Garnet Construction to form JV with Sternon Group, Dubai

Garnet Construction Ltd is planning to enter into a 50:50 joint venture (JV) with the Dubai-based Sternon Group to develop properties in Europe - with a prime focus on Sweden, and Mauritius, off the African coast. Under the JV, it will develop properties and Sternon Group, which has offices in Dubai, UK, USA and India, will market the projects globally. Initially, both the Companies are planning to invest $ 5 million each and scale up investment according to project requirements. The Company is exploring various funding options for the JV including overseas listing of a wholly-owned subsidiary to be set up for the purpose.

The Company recently bought land (over 400 acres) at Khopoli, near Panvel to develop a mega residential township. It is developing the entire township project-apartments, row houses, independent bungalows, malls, Information Technology centre and also educational facilities-over there. The ‘Magic Hills’ residential project offers plots, row houses and bungalows.

"We expect the Khopoli project to commission during this fiscal, which will also start contributing to the Company's bottomline," added Mr. Kedia. The project is valued at Rs 1,200 crore with the residential portion (250 acres) accounting for Rs 900 crore.

The stock was trading at Rs.77.75, down by Rs.0.50 or 0.64%. The stock hit an intraday high of Rs.82 and low of Rs.76.50. The total traded quantity was 414584 compared to 2 week average of 233009.

Source : Equity Bulls

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