Emaar Properties’ India business has signed a joint venture agreement with Worldwide Resorts & Entertainment to develop a 73.60-acre land lot in Gurgaon for Rs 278 crore.
Emaar India inked their third deal since December 2021, this time in June 2023. In August 2022, Emaar India and Synergy Finhub inked a joint development agreement (JDA) for the development of a 17-acre land parcel in exchange for Rs 345 crore.
In less than two years, Emaar has inked three JDAs with a minimum guarantee of Rs 1,000 crore. The developer will oversee development and provide Emaar 30% of the revenues under a revenue-sharing agreement.
According to the deal document, the new developer will pay Emaar 30% of their share of net sales. Mohamed Alabbar, the founder of Emaar Properties, claimed that the company intends to increase its focus in India.
Emaar Properties, which entered India in 2005 with the largest FDI in the real estate business at the time, invested approximately Rs 8,500 crore in the Indian real estate market through its joint venture Emaar MGF Land.
Shravan Gupta, the joint venture’s then-executive vice chairman and managing director, resigned two months after the decision to end the venture was taken in April 2016. The demerger was finally approved in July 2018.
The former partners are currently at odds because the Dubai-based real estate developer accuses the former partners of fraud in the joint venture contracts and land deals.
In November 2019, they petitioned the National Company Law Tribunal (NCLT) for a probe into these problems. They are also seeking a bank guarantee worth Rs 2,400 crore in damages to compensate for their losses. MGF has denied and contested all of these charges.