LEIGHTON has formed a $US2.5 billion joint venture with Indian based developer Emaar MGF Land with Leighton's share worth $US1.25 billion over the next five years.
The joint venture, to be known as Leighton Construction India Pvt Ltd, will provide design and construction services for Emaar MGF’s projects across
Emaar MGF has projects across the residential, commercial and retail, hospitality, special economic zones and IT parks, education and healthcare sectors.
In addition to four residential projects, Emaar MGF has 10 office and industrial parks; 10 luxury hotels; 45-50 business hotels; 100 budget Accor hotels; 100 schools and universities and 50 hospitals across in the pipeline across India.
Leighton Asia (Southern)’s managing director David Savage said
Since establishing operations in Mumbai two years ago, the company has secured 10 projects worth around $US600 million, including projects for Nokia, Flextronics, Motorola and Reliance.
“Both the Indian economy and property market are booming and by forming a partnership with
“With such a large pipeline of projects, this joint venture consolidates our future here in
Emaar MGF’s executive vice chairman and managing director Shravan Gupta said driven by its mission of creating a new
“This alliance is committed to unveiling a new paradigm in construction practices in the industry.
“We believe Leighton’s keen understanding of the Indian construction industry will be critical to help us deliver on our vision here,” he concluded.
Last week, Leighton forecast a net profit after tax of $428 million for the 2007 full year – an increase of 55% over last year’s record result of $276 million.
The profit upgrade was delivered by Leighton’s chief executive Wal King, who also announced a substantial increase in operating profit after tax of $273.43 million for the nine months to March 31, 2007 – up from $169 million last year.
Yesterday, Leighton shares closed $1.42 higher at $43.05.
Australian Property Journal
