ETA Star to Invest Rs.1,500 crores in Mumbai

 Chennai-based real estate developer ETA Star Property Developers, a part of $4 billion ETA Ascon group based in the UAE, will build a Rs 1,500 crore mall in Mumbai's Juhu area. The construction work will begin in January 2008. ETA has formed a 50:50 joint venture with Supra Estates, to develop the 10 acre plot (450,000 sq ft) into a shopping mall and service apartments. The companies have paid Rs 800-900 crore for the said plot of land. The mall will be given on a seven-year lease upon completion of the project in 2010. ETA has brought Rs 200-250 crore as equity contribution for the project in terms of foreign direct investment (FDI) and will raise the balance through banks and other financial institution. ETA has also forged a joint venture with Wavy Construction for a project based in the hill station of Khandala, Maharashtra. The project involves building luxury villas, health spas, hotels and furnished apartments. Even as the structure of the joint venture is yet to be finalised, both companies will inject Rs 400 crore for the project spread across 28 acres. A US consultancy firm, Tony Asahi, has been appointed to provide a detailed study of the area, which would help draft the final outlook of the project. ETA is currently executing a Rs 13,500 crore integrated township project at Sriperumbudur near Chennai. The project, spread over a land area of 1,200 acres, will be finished in seven years. ETA Star has created a separate special purpose vehicle for the project in which it would hold 59.9 per cent, a foreign partner 40 per cent with Tamil Nadu Industrial Development Corporation holding the rest. ETA Star is talking to a few companies in the US and Europe for the project. The company is involved in real estate ventures mainly in the southern region of the country with projects spread across Chennai, Bangalore and Hyderabad. The company is executing a residential project in Chennai, where it is developing apartments under the name of Jasmine Court. The project follows two other projects 'Binny Crescent' and 'The Gardens', both residential projects in Bangalore.

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