Nasdaq-listed Elbit Imaging Ltd. has signed a joint venture agreement with its subsidiary, Plaza Centers N.V. for the development of mixed use projects in India. Under the agreement Plaza will acquire from a 47.5% stake in Elbit India Real Estate Holdings Limited from the parent company. While Elbit is based out of Israel, Plaza is based out of Netherlands and is listed on the LSE. The Indian subsidiary owns, directly and indirectly, stakes of between 50% and 80% in three mixed use projects in India, in conjunction with local Indian partners.
Elbit three projects in India located in Bangalore, Chennai and Cochin. These projects have a total combined development budget of approximately $3.4 billion and a built-up area in excess of 3.8 million sq mt. These projects will have luxury residential units, office complexes, retail facilities, hotel complexes, hospitals, golf course and club houses. The Cochin project is located on a backwater island and will also have a marina.
Elbit Imaging is engaged in five principal fields - shopping and entertainment centers, hotels, image guided treatment and other activities. The Israeli company has been shifting its focus from Europe to India in the past few years. Last year Plaza had announced that it will invest Rs 5,000 crore in the country over the next five-seven years to create 50 entertainment and commercial centres.
Earlier this year, Elbit had signed a deal with Gujarat Govt to set up a modern dairy farm with approximately 10,000 cows and an ultra modern dairy plant that will produce basic and premium dairy products. The estimated investment in project is about $100 million. Another Dutch-Israeli investor, Kardan NV, is planning to invest $1.2 billion in India and China to develop housing and commercial centers.