December 2008
« Nov   Jan »

Contact us

Israel firm to buy 50% in Surana arm

Israel’s leading construction company U Dori Group is picking up a 50% stake in residential project in joint venture (JV) with Hyderabad-based Surana Group for Rs 125 crore, a person involved in the transaction said on the condition of anonymity.

The U Dori Group will invest in Bhagyanagar Properties and Scientia Infocom, the two real estate arms of Surana Group, for setting up a residential group for housing and construction development project in Hyderabad. The Israeli company will invest either on its own or through its subsidiaries, Dori Global and Gazit Globe.

These two Surana Group companies have a land bank of 25 acres in Hyderabad for setting up a group housing society. Dori Global is the international real estate development division of U Dori Group, that is into developing residential projects in Eastern Europe. Gazit Globe is also a Tel Aviv-listed real estate company which is engaged in acquisition, development and management of income producing properties across the globe. Surana Group is engaged in manufacturing telecom products, copper products, power cables.

Surana Group will eventually merge Bhagyanagar Properties and Scientia Infocom to create a special purpose vehicle that would act as a JV between the Surana Group and U Dori, the person added.

The subsidiary companies are in the process of obtaining necessary approvals such as layout plans, land use change, payment of external developmental charge from the state government and concerned municipal bodies.

Bhagyanagar India, a Rs 200-crore BSE-listed company of Surana Group, will give an irrevocable bank guarantee against the amount of Rs 125 crore being pumped in by the Israeli company.

According to the agreement between the two parties, in the event all approvals are not obtained by the Surana subsidiaries in a year, U Dori Group will have an option to either give a grace period of 12 months for obtaining the approvals or walk out of the project by selling its shareholding in the JV company.

Source: Economic Times

Comments are closed.