Alony Hetz Property and Investments Ltd. (TASE: ALHE) has signed a memorandum of understanding with a US investment fund for the purchase of a lot in Pune in India's Maharashtra state for $25 million. The deal is being transacted through Alony Hetz's US subsidiary, Enabler Property Group, which will purchase 40% of the fund's Mauritius-based subsidiary. The subsidiary owns 94% of a company in India, with the remaining 6% owned by a local real estate developer.
The Indian company has been granted rights to build a residential neighborhood, commercial properties and public buildings, and full rights to 500,000 square meters of space, of which 350,000 square meters will be used for building, mostly residential properties. Alony Hetz expects the building permits for the project to be issued in the second half of the year, with construction expected to take five years to complete.
Alony Hetz president and CEO Nathan Hetz said, "The tremendous potential for growth in real estate in India has not gone unnoticed by us, and we want to be part of the processes now taking place on this continent. The population of the city of Pune includes a broad class of people with a middle to upper class background, and the city has been experiencing rapid expansion in its real estate market. We will be looking at other opportunities that match our investment strategy in South-East Asia and India, and hope to sign further agreements in the future."
As well as Israel, Alony Hetz operates in four major markets - India, Switzerland, Canada and the US, and also has operations in the UK and India. Earlier this year the company invested 25% of its shareholder equity in a fund called Pacific Star Arrow, which will specialize in real estate investments in South-East Asia, principally Vietnam, as well as India.
Published by Globes [online], Israel business news - www.globes-online.com - on April 24, 2008
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