Ras Al Khaimah’s Rakeen Development has tied up with the Trimex Group of India to form a company called Rakindo, which will spend Dh18.36 billion ($5 billion) over the next five years to build a mixed-use property in India. Meanwhile, the government of Ras Al Khaimah is setting up an aluminium project, worth Dh7.34 billion ($2 billion), in India’s southern state of Andhra Pradesh, a Bloomberg report says. Also yesterday, Emaar MGF Land Limited, the Indian unit of Dubai-based Emaar Properties, said it aims to raise some $1.7 billion in an initial public offering (IPO). A statement released at the World Economic Forum summit in New Delhi said Rakindo will develop 50 million square feet of residential, commercial and office space in the next seven years in India, which is seeing tremendous growth in the construction industry.
“Our entry into the Indian real estate market couldn’t be better timed,” Bloomberg quoted Rakindo’s managing director, Prasad Koneru, as saying. He said Rakeen has already invested Dh367.16 million ($100 million) in India, the world’s second most-populous country, and will spend another $100 million for land acquisitions over the next few months. Rakeen plans to raise funds in India and will acquire 5,000 acres of land in addition to its existing 4,000 acres.
The Andhra Pradesh project involves the building of an alumina plant with a capacity of 1.5 million metric tonnes, an aluminium smelter and a 350-million tonne bauxite mine. Mohamed Alabbar, chairman of Emaar Properties, said the state-owned Andhra Pradesh Mining Development will mine bauxite for the aluminium company.
Source: Khaleej Times
4th December, 2007