Dubai: Bahrain-based GFH Financial Group has signed an agreement with Indian conglomerate Adani Group for developing an economic development zone in Mumbai.
Under the agreement, the financial group's unit Energy City Navi Mumbai (ECNM) and Adani Group will work together in creating the master plan for the lands of Phases II and III of the project, which will offer world class business infrastructure for local and international services, IT and energy companies.
The financial group's two units ECNM and Mumbai IT and Telecom City (MITTC) are two core components of the Mumbai Economic Development Zone (MEDZ).
GFH, one of the most recognised financial groups in the gulf region, is listed in Bahrain Bourse, Kuwait Stock Exchange and Dubai Financial Market.
Following the requisite approval of the master plan, Adani Group will develop the core infrastructure on these lands and will also commence the pre-sales and construction works on the site.
Investors will receive a 15 percent revenue share from sales made by Adani Group on the development on these lands and less local taxes, if any.
Announcing the agreement, GFH chief executive Hisham Alrayes yesterday said, "The partnership with Adani, further demonstrates our efforts to move forward with our development strategy for our landmark project in India.
"Furthermore, we believe this agreement will enable us to accelerate our efforts to build and extract value for GFH, our shareholders and investors."
This agreement is a part of GFH's exit strategy for the project where annual sales payments will be made by Adani Group.
Around USD 45 million has been received as part of the exit payments from the developer, where GFH owns more than 6 percent of the total equity in ECNM.
GFH is one of the most recognised financial groups in the gulf region that includes asset management, wealth management, commercial banking and real estate development.
