Emaar India Collaborates with Worldwide Resorts for Upcoming Gurugram Project
Dubai-based real estate developer Emaar Properties has signed a joint development agreement with Worldwide Resorts & Entertainment is going to develop a 73.60-acre land parcel in Gurgaon for Rs 278 crore, according to three people aware of the development.
The agreement was signed in June 2023 and the third agreement was signed by Emaar India in December 2021. In August 2022, this group entered into a joint development agreement (JDA) with Synergy Finhub for the development of 17 acres of land parcels, which involves a consideration of rs 345 crore. In December 2021, Emaar and Worldwide Resort and Entertainment signed a joint development agreement for a 119-acre land parcel for Rs 375 crore.
In less than two years, the group has also signed three JDAs with a very minimum guarantee of Rs 1,000 crore. This is also going to generate a revenue-sharing agreement where the developer is going to handle construction and share 30% of the revenue with Emaar.
ET has reviewed the land registration deeds for the three property transactions. The company, Worldwide Resorts & Entertainment Pvt.Ltd and Synergy Finhub did not reply to ET’s email query. As per the agreement copy, the new developer is going to remit an amount equal to 30% of their share of net sales of Emaar.
Mohamed Alabbar, founder of Emaar Properties, said that the company is all set to increase its focus on India. He also said that hospitality in India has a great future as the supply and demand situation is very encouraging. The demand for residential properties has no limit, however, when it comes to the shopping mall business, India is just the beginning. Emaar is going to focus on this sector and mainly on the main cities of India.
The group entered the market in 2005 with the largest FDI in the realty sector then it had to invest about Rs 8,500 crore in the Indian real estate market through its joint venture Emaar MGF Land. In April 2016, it was also decided to end this joint venture, and two months later, Shravan Gupta, the then-executive vice chairman and managing director of the joint venture, resigned from the post. The demerger was finally approved in July 2018.
Currently, the former collaboration was also engaged in a dispute, as the Dubai-based real estate developer has alleged fraud in the joint venture agreement and land transactions.
However, In November 2019, the company lodged a petition with the National Company Law Tribune (NCLT) requesting an investigation into these matters. It is also seen they seek a companion of rs 2,400 crore through a bank guarantee to cover their losses. MGF has also contested and denied all these accusations.
Mohamed Alabbar, the founder of Emaar Properties, said that the company was a super young company when they came to India 20 years ago. Since then, the company has been learning from mistakes. The company is not a good partner as we do business differently.