Israeli JV to invest $100 mn in Indian realty

India's real estate boom is now attracting foreign players with two major Israeli firms joining hands to invest $ 100 million in its market.

The IDB group, one of the largest private business enterprises in Israel, and another Israeli frm Electra Real Estate have formed a joint venture in which the two firms will have 45% share each. An already active unnamed Israeli company in India would hold the remaining 10% stake, a media report said here.

The Israeli companies will be working with Indian real estate group Murugappa and are currently negotiating the construction of residential units and commercial and office space, mostly in Chennai, Israeli daily Ha'aretz reported.

Nochi Dankner, the CEO of IDB Group, recently visited India and met with executives of the Murugappa group in this regard, it said.

Group subsidiary Property & Building will be handling the Indian real estate venture. As per the arrangement being worked out, Murugappa, the Indian partner, will hold a 10% stake in a planned second-stage joint venture.

Murugappa reportedly has 28 subsidiaries and a payroll of 30,000 with an annual turnover of $1.5-2 billion.