Mukesh Ambani taps developers to execute real estate dream

Mukesh Ambani is not going solo in his grand pursuit of his Rs 25,000-crore realty dream that is set to take shape in Navi Mumbai Special Economic Zone.
The elder Ambani brother, who aims to turn 14,000 barren hectares on the outskirts of Mumbai into a metropolis, is reportedly tapping major real estate developers across the country to help give shape to his dream city, that some say could one day rival India’s financial capital. His lieutenants are out on a secret roadshow across the country, wooing developers with a master proposal. Some leading developers here, who have been given a glimpse of the grand scheme, said one major feature is the formation of separate joint ventures with realtors for each component. The SEZ is to have residential complexes, hotels, hospitals, shopping malls, amusement parks, shopping malls and even an 18-hole international golf course.
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The catch, as a realtor put it, is that Mr Mukesh wants a majority stake of 60% in the ventures, leaving the rest to the developers. “Real estate developers would execute the projects and keep a minority stake while Reliance would provide the capital and control the majority stake,” a realtor said.
Developers are not enthusiastic with this proposal. “The realty sector is booming and most developers, in Kolkata and elsewhere, have their hands full. There is no point sharing the profit in a project where we don’t have majority stake,” a developer said. Reliance is believed to have approached the Kolkata-based Harshvardhan Neotia, the cement, housing and lifestyle baron.
Mr Neotia recently pulled out of cement by selling Gujarat Ambuja’s business to Holcim, but he has a significant presence in housing as a pioneer of the public-private model. Mr Neotia, as chairman of Ambuja Realty Development Ltd, is scouting for opportunities in the construction sector beyond Bengal, and is believed to have just inked a deal for a Chandigarh project. Several other projects in North India are also on his radar. When contacted, Mr Neotia, who is currently in Italy, refused to comment.