BSR and Lehman Brothers in Indian real estate venture

BSR Engineering will build projects with Lehman Brothers financing.

Another Israeli developers is entering the Indian real estate market. BSR Engineering and Development Ltd. (TASE:BSRE) and Lehman Brothers Real Estate Partners have signed an memorandum of understanding (MOU) to set up a joint venture to buy land in India for the development of residential and commercial projects. A BSR Engineering subsidiary will build projects with Lehman Brothers financing.

Within three years from the signing of the final documents, the companies will invest $55 million in the joint venture: BSR Engineering will provide 36% of the financing and Lehman Brothers will provide 64%

The joint venture will set up special project vehicles for each project, and will own at least half of each project's shares. BSR's subsidiary will also be allowed to invest independently in each project, to own up to one half of it.

BSR Engineering rose 2% on the TASE today.

Other Israeli real estate developers operating in India or planning to do so, include Fishman Holdings subsidiary Mondon Investments Ltd., Elbit Medical Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT), IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Property and Building Ltd. (TASE: PTBL) in joint ventures with Electra Real Estate Ltd. (TASE:ELCRE), Mivtach Shamir Holdings Ltd. (TASE:MISH), and Alony Hetz Property and Investments Ltd. (TASE: ALHE).

Lehman Brothers Real Estate is partners with other Israeli developers in Eastern Europe. It has partnered with Olimpia Real Estate Holdings Ltd. (TASE: OLMP) subsidiary Nanette Real Estate Group NV (AIM:NAT; TASE:NANT.B1) in Hungary and with Direct Capital Investments Ltd. (TASE:DCI) in Latvia.

Published by Globes [online], Israel business news - www.globes-online.com - on January 14, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018