Bahrain-based GFH Financial Group has announced that Energy City Navi Mumbai (ECNM) has entered into an agreement with Adani Group, a major Indian conglomerate that operates the largest private sector port and power business in India.
ECNM and a Mumbai IT and Telecom City are two core components of the Mumbai Economic Development Zone, reported the Gulf Daily News, our sister publication.
As part of the terms of the agreement, Energy City Navi Mumbai Holding and Adani Group will work together in creating the master plan for the lands of Phases II and III of the project.
Following the requisite approval of the master plan, Adani will develop the core infrastructure on these lands, after which Adani will commence the pre-sales and construction works on the site.
Investors will receive a 15% revenue share from sales made by Adani Group on the development on these lands and less local taxes, if any.
GFH chief executive Hisham Alrayes said “the partnership with Adani further demonstrates our efforts to move forward with our development strategy for our landmark project in India”.
“Furthermore, we believe this agreement will enable us to accelerate our efforts to build and extract value for GFH, our shareholders and investors.”
This agreement is a part of GFH’s exit strategy for the project where annual sales payments will be made by Adani Group.
Around $45 million has been received as part of the exit payments from the developer, where GFH owns more than 6 per cent of the total equity in ECNM.
Source: Trade Arabia