The India division of Dubai-based real estate developer Emaar Properties has signed a joint venture deal with Worldwide Resorts & Entertainment to build a 73.60-acre land parcel in Gurgaon for Rs 278 crore.
This was Emaar India’s third contract since December 2021, and it was signed in June 2023. Emaar India and Synergy Finhub signed a joint development agreement (JDA) in August 2022 for the development of a 17-acre land piece in exchange for a payment of Rs 345 crore.
Emaar and Worldwide Resorts & Entertainment had agreed to jointly build a 119-acre land lot for Rs 375 crore in December 2021.
Emaar has signed three JDAs with a minimum guarantee of Rs 1,000 crore in less than two years. There will be a revenue-sharing arrangement where the developer will oversee construction and provide Emaar 30% of the profits.
The new developer will pay Emaar an amount equal to 30% of their share of net sales, as stated in the agreement document. The founder of Emaar Properties, Mohamed Alabbar, stated that the business plans to boost its emphasis in India.
Through its joint venture Emaar MGF Land, Emaar Properties, which entered India in 2005 with the largest FDI in the real estate industry at the time, invested over Rs 8,500 crore in the Indian real estate market.
Shravan Gupta, the joint venture’s then executive vice chairman and managing director, resigned from his position two months after the decision to discontinue the joint venture was made in April 2016. In July 2018, the demerger was ultimately allowed.
The former partners are currently at odds because the Dubai-based real estate developer alleges fraud in the joint venture contracts and land deals.
They submitted a petition to the National Company Law Tribunal (NCLT) in November 2019 asking for an investigation into these issues. Additionally, they are requesting a bank guarantee for Rs 2,400 crore in damages to compensate their losses. All of these allegations have been disputed and refuted by MGF.