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Israeli cos bet big on Indian realty market


Israeli cos bet big on Indian realty market

Last updated: May 17 2007
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  • Israeli cos bet big on Indian realty market

    Several Israeli companies have been putting money in India’s property market since mid 2005 when the sector was opened for foreign direct investment. At least a few billion dollars have so far been committed.

    Known for their engineering skills, Israeli companies have built large malls and shopping complexes all over Europe. Now, India seems to be preferred destination. There are many areas Israeli companies have been investing in Indian market, real estate is certainly one of them.

    There is enough activity on the ground that confirms the trend. In a major development Jerusalem Economic Corporation (JEC) is set to buy land worth $330 million in Thane, near Mumbai. JEC had announced that the investment will be through its Indian subsidiary which will buy farm land in Thane; it hopes to change its zoning designation to construct residential and commercial properties.

    In February Elbit Medical Imaging signed an agreement with Ambuja Realty. It aims to invest over $1 billion in India. It plans to put money in hospitals, hotels, malls and office and residential complexes.

    Another group Alony Hetz has set up a consortium with other Israeli and Australian companies to invest in Indian properties. Alony Hetz holds 40% share in the consortium, which plans to invest a total of $100 million. It recently signed an MoU to build a $160-200 million 450,000-sq m second home holiday house project between Mumbai and Pune.

    Electra Real Estate on November 30, 2006, entered into an agreement with a member of the Property & Building group for the establishment of a company in Mauritius to investment in the real estate sector in India.

    That’s not all. Nochi Dankner and Gershon Salkind, two Jewish entrepreneurs, have joined hands for investment in India. Dankner’s company Property & Building Corp and Salkind’s Electra Real Estate are establishing a joint company for investment in the sub-continent. The group plans to start with an initial investment of $100 million in housing in southern India.
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