The companies will build 300 luxury apartments in Faridabad for $125 million.
Azorim Investment, Development and Construction Ltd. (TASE: AZRM), controlled by US developer Shaya Boymelgreen, has closed a contract to build a luxury residential project in the New Delhi suburb of Faridabad. Azorim subsidiary Azorim International Holdings Ltd. and Indian developer Omaxe Ltd. (BSE:532880) jointly own the Omaxe Forest project in equal shares.
Azorim will invest $27 million of shareholder’s equity in the project, which was paid when the deal was closed. The project will include 300 apartments with an aggregate space of 120,000-sq.m. The total cost of the project, including the purchase of the 15-acre site, is $125 million. The average apartment size will be 400 sq.m. and the average price will be $500,000, generating $150 million in expected proceeds, and pretax profit of $40-50 million.
Construction of the project began a few weeks ago.
Published by Globes [online], Israel business news - www.globes.co.il - on August 14, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007