Akruti City plans JV with Pacific Alliance Group

Written by Mona Mehta | Mumbai, Jul 7 | Updated: Jul 9 2008, 04:44am hrs
After having raised Rs 1,500 crore from private equity funds Citi Venture Capital International and AIG, the publicly listed Akruti City is now planning to form a 50:50 joint venture (JV) with USA-based Pacific Alliance Group (PAG) - an entity involved in construction apart from residential and townships development. Hemant Shah, chairman, Akruti City told FE, This is to upgrade and expand Akrutis real estate and township projects to international standards. Talks are currently on with PAG and we are planning to make PAG a special purpose vehicle (SPV) for our future real estate projects as we are impressed with the international expertise in infrastructural engineering which PAG brings into Indias construction and township projects.

Further, Shah also added that Akruti City is currently talking to various private equity funds including Goldman Sachs to source funds from them which would be to the tune of over $100 million. Akruti City is planning to start a township project in Panvel and other cities apart from various other residential and commercial projects as well from the third quarter of 2008. Currently, Akruti City is developing three large-scale commercial projects in Andheri, Kanjurmarg and Bandra-Kurla Complex (BKC). Shah said, By August, we will also launch 12 new real estate projects in Mumbai, Pune, Thane, Surat, Ahmedabad and Baroda.

PAG is understood to be in talks with Goldman Sachs, a full-service global investment banking and securities firm, for sourcing fresh funds for Akruti Citys real estate expansion plans. Jay Ved, president and CEO, PAG said, We aim to raise close to over $100 million from the global investment banking firm major. For the purpose, talks are currently on with them. Once the JV is signed with Akruti City, we aim to provide Akruti with our engineering capabilities and technical know how to match Akrutis future real estate projects with the international standards, Ved opines.