Gulf Finance House, a Bahrain-based investment bank, said India’s Wadhwa Group will invest more than $1bn to develop the bank’s energy and technology centres near Mumbai.
Gulf Finance spent about $1bn to buy 1,250 acres of land in Navi Mumbai on the city’s outskirts and the permits to build two projects, Hisham Al Rayes, Gulf Finance’s chief investment officer said in a phone interview from Dubai on Tuesday.
The agreement will allow the bank’s investors to exit the projects over time, while work on building infrastructure will begin shortly, Al Rayes said.
A change in market conditions since the onset of the credit crisis made “exits through direct land sales without real development” of the centers “unviable,” Al Rayes said. Gulf Finance and Wadhwa will build offices, homes, hotels and malls, he said.
Gulf Finance announced plans to build the telecommunications park for energy companies in 2006 at a cost of $2bn.
The bank expanded the project after a good response from investors in the Gulf Arab region, it said in 2007.
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