Old Mutual forays into property management

The London-listed Old Mutual Plc is strengthening its presence in India. After a foray into the life insurance business, the group has now entered the growing property solutions segment.

Old Mutual Properties, a subsidiary of Old Mutual Plc, has entered into an equal joint venture with the Mumbai-based ICS Infrastructure to provide property management services in India.

The JV, christened Property Zone, will initially offer mall management services and will eventually provide a wide spectrum of services, said Subhash Thakrar, director of ICS Infrastructure.

Property Zone has already initiated talks with established and upcoming malls in Mumbai to provide a range of services from conceptualisation to development, project management, leasing and tenant mix, Deepak Premnarayen, chairman of ICS Infrastructure told Business Standard.

Ian Watt, managing director of the South Africa-based Old Mutual Properties, said, "The lack of skills associated with the creation and operation of shopping and entertainment centres in India has provided the opportunity for a joint venture."

In Asia, Old Mutual Properties has made its second foray in India, following its presence in the Middle East.

In the life insurance business, Old Mutual has an equity partnership with the Kotak Mahindra Bank.

In another development, Old Mutual Asset Managers and the Tata group are in the race for acquiring the south African government's 26 per cent stake in telecom company Second Network Operator.

The foray into the Indian real estate services market comes at a time when the retailing sector is on an upswing. It is learnt that over 200 malls are being developed across the country in the next few years.

ICS Infrastructure is privately held by Premnarayen and London-based Subhash Thakrar.

The company has joint ventures with the South Africa-based Interpark for car park management, Bentel for shopping center designing and WBHO for construction of roads and the France-based GEA for toll equipment.

Property Zone will have to compete with property consultancy and management firms such as Knight Frank India, Chesterton Meghraj, Cushman & Wakefield, Cresa Partners, Jones LangSalle among others.