Deyaar and Ansal API sign MOU for joint development in India

Both partners signed a Memorandum of Understanding (MoU) last week for an exclusive tie-up to develop a mega mixed-use township comprising residential, commercial, institutional and industrial properties in India. The partnership with the Indian property major envisages Deyaar bringing its international expertise to complement Ansal's established expertise in real estate development and rich knowledge of the local market and regulations.

Expressing his delight at entering a market as matured and fast-growing as India, H.E. Dr. Mohammed Khalfan Bin Kharbash, Chairman of Deyaar and UAE Minister of State of Finance and Industry, said that the move was reflective of the expanding economic friendship being forged between India and the UAE. "The recent visit to India by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and the Ruler of Dubai, has set the pace for a new era in the relations between the two countries. This could not have come at a more opportune moment for Deyaar, which is currently looking for new and promising markets. I am sure the move will open a new and exciting chapter in the short, yet successful history of Deyaar," he concluded.

Ansal Properties and Infrastructure Limited (APIL), promoted by the Delhi based Ansal-API Group, is one of the largest players in the Indian real estate market. With a track record of 40 years in the business and current market capitalization of over USD 1 billion, the Ansal group has real estate expertise that spans township development, office and residential projects, retail malls and IT parks. With a land bank of over 5,000 acres in northern India, Ansal Group is one of the largest land bank owners in India.

Elaborating on the decision, Zack Shahin, Chief Executive Officer, Deyaar, has stated that this partnership is the beginning of a series of projects across India. "We are indeed happy to work with a seasoned and reputed real estate developer of the stature of Ansal API, which brings into this relationship its impeccable expertise spanning four decades. In turn, we will be able to take to India our unique experience and state of the art expertise in property development in the UAE, which is now the centre of a globally discussed real estate boom," he explained.

Entering India is a decisive step in Deyaar's international expansion plans. The move assumes special significance in the backdrop of the phenomenal growth that Indian economy has achieved over the last few years, touching a whopping 9.2% in the financial year 2006-07.

Commenting on the joint venture, Pranav Ansal, Director - Ansal API, said "We are delighted to have a successful partner like Deyaar which brings its world class expertise of design capabilities , construction technology and financial & management resources in building residential and commercial space to India. Deyaar's projects in UAE and elsewhere are not only impressive, but also reflective of a wise approach to architecture, building dynamics and the idea of space. We welcome Deyaar to India, through what we strongly believe will be a landmark partnership and act as catalyst to growth and development in India."

Coming close on the heels of India turning a trillion dollar economy and the latest McKinsey Global Institute study predicting that the current rate of growth will inflate incomes in the country by almost three times over the next two decades, Deyaar's decision to enter India reflects a close assessment of the Indian economy and the property market. The Indian real estate industry has reportedly witnessed a growth rate of over 30% in 2006, and has an existing demand-supply gap of over 24 million units, prompting key players from across the globe to invest in the country.