Singapore – Keppel Land Limited (Keppel Land), through its wholly-owned subsidiary, has entered into a joint venture with leading Indian developer, Rustomjee Group, to jointly develop the 51.4-hectare Urbania integrated township located in Thane, a mature and well-connected district within the Mumbai Metropolitan Region, India.
This is the first such collaboration between a Singaporean developer and an Indian developer for a township in the Mumbai Metropolitan Region, which is among India’s fastest-growing regions. Since its launch in 2006, the Urbania township has housed 2,700 residential units amid comprehensive amenities.
Keppel Land will be acquiring a 49 percent stake in the joint venture company, Kapstone Constructions Private Limited, at a consideration of about INR 4,091 million (approximately S$78.2 million1).
Upon completion of the acquisition, Keppel Land and Rustomjee Group will jointly develop an addition of about 7,400 homes and retail units with a total gross floor area of approximately five million square feet. The development cost for the first phase under the joint venture, which will comprise approximately 460 residential units, is expected to be approximately INR 4,016 million (approximately S$76.8 million1). Completion of the acquisition is subject to the satisfaction of certain conditions precedent and is expected to take place around the first quarter of 2020.
The abovementioned transaction is not expected to have any material impact on the earnings per share and net tangible assets per share of Keppel Corporation Limited for the current financial year.
[1] Based on an exchange rate of SGD 1: INR 52.3.
