| UEM Builders Bhd, a subsidiary of UEM Group, has signed a Memorandum of Understanding (MOU) with India's Ansal Properties & Infrastructure Ltd (Ansal API) for a possible joint venture (JV).
The purpose of the MOU executed on Sep 28, 2007 is for the parties to enter into discussions with a view to form a JV company in India to undertake building, construction and engineering activities in India.
The JV company, to be named UEM Builders-Ansal API Contracts Pvt Ltd, will have a board of directors drawn from both UEM Builders and Ansal API. This alliance will enable UEM to firmly position itself to tap into India’s booming construction and property sector, which has been enjoying annual growth rates of about eight percent.
Commenting on the strategic alliance, UEM Builders’s Managing Director Datuk Ridza Abdoh said, “The infrastructure and real estate sector in India is on an upswing, offering tremendous opportunities for us. Having established a strong foothold in Southeast Asia and with over ten years of experience in construction activities in India, it was an obvious choice for us to expand our presence in the country.”
Ansal API is a leading real estate developer in India with proven track records in residential and commercial segments. UEM Builders has been present in India since the early 1990s through its subsidiary, UE Development Pvt Ltd, and has been involved in the construction of over 700 km of roads in India.
In the new joint venture, UEM will hold a 60 percent stake and Ansal the balance, and their first project is expected to develop a 1,765-acre township in Lucknow, the capital of Uttar Pradesh.
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