Date:07/05/2008 URL: http://www.thehindu.com/2008/05/07/stories/2008050755611600.htm

Business

Mahindras to develop project in Nagpur

Special Correspondent

Forms joint venture with B.E. Billimoria & Co.

MUMBAI: Mahindra Lifespace Developers Ltd. (MLDL), the real estate and infrastructure development arm of the Mahindra Group, has jointly won a bid to develop a residential project over a scheduled land comprising around 25 acres in Nagpur along with B.E. Billimoria & Co. Ltd. (BEBL).

The residential project was primarily offered to various firms in order to meet the housing requirements of Multi-modal Internal Hub Airport (MIHAN) at Nagpur.

The development of MIHAN area will broadly comprise development of airport and aircraft maintenance area, special economic zone and support infrastructure.

Special Purpose Vehicle

The investment towards land will be Rs. 21 crore initially and this will go up to Rs. 75 crore over three years.

The total investment is to be around Rs. 500 crore over a five-year period.

The MLDL-BEBL consortium will form an SPV (special purpose vehicle) company to undertake the project, in which 70 per cent equity will be held by MLDL and 30 per cent by BEBL.