A major business group is in advanced talks to acquire an Indian real estate company for an enterprise value of around USD 1.4–1.5 billion as it looks to expand its property business, according to sources. The Dubai-based real estate firm entered the Indian market in 2005 in partnership with an Indian developer and invested Rs 8,500 crore through a joint venture. In April 2016, the Dubai-based firm decided to end the joint venture through a demerger process.
The Indian company has a large portfolio of residential and commercial spaces across Delhi-NCR, Mumbai, Mohali, Lucknow, Indore, and Jaipur. According to sources, the talks between the Dubai-based firm and the Indian business group are in an advanced stage. Both parties declined to comment. In January this year, the Dubai-based firm said it was in discussion with a few groups in India for a potential sale of a stake in its Indian entity, but the valuation and other terms of a potential transaction were not finalized.
Sources said the Dubai-based company is looking to sell a stake in the Indian entity, but the extent of dilution in shareholding is not yet decided. The Indian business group is active in the real estate market through its unlisted entities, which have been developing multiple projects across major cities in India.
One of the world’s largest real estate companies, the Dubai-based firm has a land bank of around 1.7 billion sq ft in the UAE and key international markets. Some of its major projects include the Burj Khalifa and Dubai Mall.
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