Oman Fund to invest Rs 620 Crore to Boost Mangalore City Realty

13 September 2009

A sovereign fund of the Sultanate of Oman is learnt to have decided to invest about Rs 620 crore ($125 million) in Mangalore-based realty developer, Mohtisham Estate’s proposed 300-acre township.

The deal is said to be the largest ever investment by a single entity in tier-II cities of the country.

Oman Investment Fund will be picking up 50% stake in Mohtisham Estates, a joint venture planning to develop roughly 18 to 19 million square feet project on the highway from the city to Bangalore. S M Arshad of Mohtisham has confirmed that Oman Sovereign Fund has taken a stake in their project, without going into further details.

Mohtisham has been in reality business since about the last two decades, with established ties in the Gulf region. It is said that several Middle East sovereign funds are on the look out for opportunities to invest in real estate and infrastructure sector in the country.

The said investment will come in a phased manner and it can exceed the above figure, sources said. The work in the project is likely to start during he next year, and the entire project is scheduled to be completed in eight years. The first phase of the project might be ready for market in three years. The township will have residences, malls, schools, hotels and a special economy zone, it is learnt.

Optimists believe, that the city, where Mangalore Refinery and Petro Chemicals has invested heavily for its expansion project and where special economic zone is slated to come up, will witness a boom with the said investment.



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