AIG Global, a New York-centered private equity giant, has purchased RMZ Corp’s 50% stakes in their Hyderabad mall project. The private equity giant plans to turn the mall project to a residential project.
AIG Global; after gaining Bangalore-centered real estate group RMZ Corp’s 50% stakes, has now plans to turn the stalled mall-cum-office project into a residential project. The mall-cum-office project, which was supposed to be finished by the first quarters of 2012, has been stalled due to some undisclosed issues.
AIG Global has bought 50% stake from RMZ Corp, their Indian Partner for the mall-cum-office project in Hyderabad. After gaining the stakes AIG has now plans to develop a residential project instead of the mall-cum-office project. The deal is said to be settled at a price of Rs.53 Cr.
With some additional investment in the 11-acred project, the PE giant will turn the project into a residential project. According to the available sources the project is to be completed by the first quarter of next financial year (FY-2014-15). However an official with direct knowledge of the development said that the launch depends on the internal approvals.
While MD at AIG Global Real Estate India Mr. Bamasish Paul refused to comment on the issue, RMZ Corp’s MD Mr. Raj Menda said that the dispute was cordially settled down. The new deal is believed to end their long-term dispute between the two. It was due to their sharp disagreement that the project, which was to be completed by the first quarters of 2012, did not reach anywhere near to completion.
Blaming the Indian firm for the failure, AIG Global had sent a notice that demanded legal compensation to RMZ Corp. The legal notice prompted the Bangalorean firm to ask $20 million as compensation for their loss. The Indian firm stated that they had faced a loss by allowing the PE major to quit.
AIG Global had already invested Rs.350 Cr in the project and will invest more to complete the project. They plan to develop a residential project at an estimated investment of Rs.1000 Cr. The project; consisting around 1,500 housing units, will offer each housing unit at around Rs.50 to Rs.60 lakhs.
