New Delhi, Sept 28 (UNI) Real estate firm Ansal Properties&Infrastructure Ltd today entered into a strategic alliance with Malaysia's UEM Builders to invest Rs 80 to Rs 100 crore over the next one to three years in their joint venture company.
The JV company will start with the construction of Ansal's hi-tech city project spread over 1,765 acres at Lucknow and then gradually move to golf city project at Mohali.
UEM, holding 60 per cent in the JV named UEM Builders-Ansal API contracts Pvt Ltd, will participate in the construction projects in northern India, Ansal Properties Director Pranav Ansal told reporters here.
The investment and revenue sharing of the company will be on the basis of their equity stake in the company, he added.
After completing some of the Ansal's projects, the company will bid for external parties.
''We are targeting a revenue of Rs 400-500 crore in the next two to three years from this JV company, Mr Ansal claimed.
Currently, Ansal API has total projects valued at Rs 26,000 crore, most of the projects are scheduled to be executed over the next five to six years.
UEM Builders Managing Director Dato' Ridze Abdoh Hj Salleh said, ''Our partnership would bring out the best from both the companies.'' He also said UEM builders are in talks with other real estate players for JV, but refused to divulge the names of the players.
Commenting on the government's decision to set up a regulatory body for real estate players, Mr Ansal said this should have come earlier, as about 70 per cent of the realty sector is unorganised and with such regulations some of the malpractices will come under control.
On rupee appreciation front, Mr Ansal said it benefits the realty players, with most of the equipments being imported from outside.