Garnet mulls Australia foray

Garnet Construction is mulling residential projects in Australia by next year and plans to invest about $10 million in that country.

"The Australian market is growing at a good pace and hope that in the next four to five years, it will create a huge demand in the property market," Garnet Construction Director Arun Kedia told reporters here today.

Kedia said the price of land Down Under was 'high', but could not be compared to the 'hot' land prices in the metropolitan cities in India.

He said the company would invest around $10 million initially in the Australian market, which might go up depending on the future needs.

"We will fund the project from internal accruals," he said, adding the company has no plans to venture into any other country at the moment.

Kedia was talking to reporters after announcing an exclusive three-year tie-up with Dubai-based real estate firm Sternon Group for marketing its Rs 1,200-crore township. Spanning across 400 acres of land near Panvel in Navi Mumbai, the project, 'Magic Hills' would comprise 3,500 bungalows, Kedia said.

He added that the company hopes to clock a net profit of Rs 250 crore by selling the project. Kedia said that the company aims to sell 85 per cent of the project to non-resident Indians in the US, UK and the West Asia.