Ascott, Rattha ink JV for property development

Chennai, Aug 24 (UNI) International serviced residence company, Ascott Group of Singapore and Indian Property developer Rattha today signed a joint venture (JV) agreement to acquire and develop seven properties in India by 2010 at an investment of 220 million USD (Rs 1,000 crore).

The agreement was signed by Ascott Group CEO and Managing Director Cameron Ong and Rattha Chairman and CEO H S Rattha in the presence of Singapore Education Minister Gan Kim Yong.

The seven properties, comprising 1,000 units, would come up at Chennai, Pune, Hyderabad and Bangalore, Mr Ong and Mr Rattha told reporters after inking the pact.

The first project would be Somerset Greenways Chennai at MRC Nagar in the city at an investment of 42 million USD in which Rattha and Ascott would have 60:40 stake.

Funds would be raised through a combination of debt and equity for Somerset Greenways comprising 210 units of serviced residence apartments comprising one and two bedroom units and a studio apartment. It would be operational by the first half of 2008.Separate JVs would be signed for each of the seven properties, they said.

Speaking on the occasion, Mr Gan Kim Yong said Singapore was looking for more collaborations with India both in business and education fields.

Describing the relations between the two countries as excellent, he said Singapore's exports to India in 2005 stood at 16.6 billion USD, a 50 per cent jump compared to last year. The island nation's investment in India was also flowing at an increased rate.

UNI GV GM 1919