The Hindu Business Line : DLF sets up joint venture co with Laing O'Rourke

REAL estate company DLF Universal and UK-based $5 billion infrastructure major Laing O'Rourke have entered into a joint venture to form DLF Laing O'Rourke with an initial investment of about Rs 500 crore.

"The joint venture will help DLF become a major player in the country's construction and infrastructure development programmes. It will tap potential across infrastructure sector covering express highways, airports and hi-tech construction involving power plants and mega projects," the DLF Universal Vice-Chairman, Mr Rajiv Singh, said at a conference here.

The two partners would contribute Rs 250 crore each towards the initial corpus, he added. The newentity is eyeing Rs 5,000 crore turnover by 2010-11.

"In addition, a large fund would be floated with a corpus of about $1.5 billion. The aim of such an exclusive fund would be to extend capital to executive agencies involved in infrastructure projects," he said, adding that the funds would be extended to build, operate and transfer (BoT) projects. Provisions would also be there for international agencies and institutional investors to pump money in the fund, in addition to contribution from the joint venture.

The fund is expected to become operational by next fiscal, he said. "We will take help of a leading merchant banker for this purpose," he added.

The venture also plans to aggressively bid for modernisation of airports in the country including Chennai. "We have lot of experience in executing airport projects. We will be interested in participating in such projects," the Laing O'Rourke Chairman, Mr Ray O'Rourke, said.

More Stories on : Alliances & Joint Ventures

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page