Keppel Land, the property arm of Singapore-headquartered diversified company Keppel Corporation, has entered into a joint venture with Mumbai-based developer Rustomjee Group to develop an integrated township in Thane.
Keppel Land will be acquiring a 49% stake in the joint venture firm Kapstone Constructions Pvt. Ltd for about Rs 410 crore($57.61 million). The development marks the first such collaboration between a Singaporean and an Indian developer for a township in Mumbai metropolitan region.
Upon completion of the acquisition, Keppel Land and Rustomjee Group will jointly develop an addition of about 7,400 homes and retail units with a total gross floor area of approximately 5 million sq ft.
The 51.4-hectare township project Urbania has housed 2,700 residential units since its launch in 2006, Keppel Land said in a statement.
The development cost for the first phase under the joint venture, which will comprise approximately 460 residential units, is expected to be approximately Rs 401.6 crore.
Boman Irani, chairman at Rustomjee Group, said this is the beginning of two large developers coming together to build a strong partnership in the Mumbai metropolitan region market.
“The partnership has landed on a rare opportunity of development of such scale in Mumbai, which is experiencing rapid demand for quality homes,” said Ho Kiam Kheong, president (India) at Keppel Land.
The company will leverage the Rustomjee Group's extensive network and deep knowledge of the local property market, he said.
Keppel Land is geographically diversified in Asia, with Singapore, China, and Vietnam as its key markets, while it continues to scale up in other markets such as Indonesia and India.
Rustomjee Group has a development portfolio of 16.6 million square feet of completed projects, 10.9 million square feet of ongoing development and 22 million square feet of planned development spanning across the Mumbai Metropolitan Region.