UAE's Al Fajer to invest $1 bn in Indian realty

Dubai-based realty firm Al Fajer Properties announced on Wednesday its plans to invest up to $1 billion to develop commercial and townships projects in India through the joint venture route.

"We have looked at several locations -- Gurgaon, Gujarat, Hyderabad, Mumbai and Chandigarh -- for investments up to one billion dollars through a joint venture. We will be entering the Indian market once the deal is finalised with the right project at the right time," Al Fajer Chief Executive Officer Shahram Abdullah Zadeh said in a statement.

Al Fajer is in talks with two real estate developers in India and the joint venture is likely to be finalised soon, he said. Its plan to enter the Indian property market comes on the heels of Dubai-based Nakheel's tie-up

with real estate major DLF.

In 2005, Emaar Properties from the Emirates formed a joint venture with realty firm MGF. Besides, the company also plans to create a real estate fund to facilitate investments by small investors in Dubai property.

The company had received inquiries from small investors from India keen on investing in Dubai projects since it offered an attractive proposition to maximise returns with projected rental yield in excess of 20 per cent per annum.

"Our decision to create an Indian small investor-focused Al Fajer real estate fund is in direct response to this demand," Zadeh added.