Keppel Land and India's Rustomjee Group to co-develop integrated township in Mumbai

Keppel Land is partnering the Rustomjee Group to develop homes and retail units in the Urbania integrated township, located within India's Mumbai Metropolitan Region. PHOTO: KEPPEL CORP

SINGAPORE - Keppel Land, the property arm of Keppel Corp, has entered into a joint venture with India's Rustomjee Group, to develop a 51.4-hectare integrated township in Thane, a district within the Mumbai Metropolitan Region in India.

Keppel said this is the first such collaboration between a Singapore developer and an Indian counterpart for a township in a region considerd among India's fastest-growing. Since its launch in 2006, the Urbania township has housed 2,700 residential units amid comprehensive amenities, said Keppel Corp in a media release on Sunday (Dec 15).

Keppel Land will acquire a 49 per cent stake in the joint venture company, Kapstone Constructions Private Limited, through a wholly-owned subsidiary, for 4.1 billion rupees (about S$78.2 million).

Upon completion of the acquisition, Keppel Land and Rustomjee Group will jointly develop 7,400 homes and retail units with a total gross floor area of approximately five million square feet. The development of the first phase under the joint venture, which will comprise approximately 460 residential units, is expected to cost about four billion rupees (about S$76.8 million).

Mr Ho Kiam Kheong, President (India), Keppel Land, said: "Our collaboration with the Rustomjee Group for this maturing integrated township is in line with Keppel Land's strategy to strengthen our presence in high-growth areas such as the Mumbai Metropolitan Region. The partnership has landed on a rare opportunity of a development of such scale in Mumbai, which is experiencing rapid demand for quality homes.

"We will leverage the Rustomjee Group's extensive network and deep knowledge of the local property market, as well as Keppel Land's international experience and strong execution capabilities to develop a highly liveable and vibrant township."

The Rustomjee Group has a development portfolio of 16.6 million square feet of completed projects, 10.9 million square feet of ongoing development and 22 million square feet of planned development across the Mumbai Metropolitan Region. They includes two township developments in Thane and Virar, as well as large residential developments, office complexes, retail, healthcare and educational institutions spread across Mumbai City.

Keppel said it expects completion of its latest acquisition, which is subject to certain conditions, around the first quarter of 2020.

The transaction is not expected to have any material impact on the earnings per share and net tangible assets per share of Keppel Corp for the current financial year.

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