New Delhi: Realty major Emaar-MGF has entered into a memorandum of understanding with Dubai Aerospace Enterprise (DAE) to tap the burgeoning airport upgrade market in India. Together, the companies will explore potential areas of co-operation and identify and evaluate the design, construction, expansion, renovation, modernisation, commissioning, maintenance, operation, management and development of existing and new airports in India.

Emaar Properties is one of the world's leading real estate developers with operations in 16 countries, while Emaar-MGF is their joint venture with the Delhi-based MGF Group.

As per the draft red herring prospectus filed by Emaar-MGF last week, the company says that it has identified the development of airports in India as a growth opportunity. "The government of India has already taken initiatives in setting up airport development projects, both Greenfield and Brownfield, through public and/or private partnerships, and has announced similar plans for many new cities. Such projects also allow development of necessary non-aeronautical commercial facilities, such as hotels, convention centres, retail and commercial/office spaces, in and around the airport. These opportunities would require us to tie up with specialists in airport development and operations.

We have a memorandum of understanding with DAE to work together with DAE to explore potential areas of co-operation and to identify and evaluate the design, construction, expansion, renovation, modernisation, commissioning, maintenance, operation, management and development of existing and new airports in India with a view to furthering our respective strategic objectives in India," it says.

Emaar-MGF has filed for an IPO with market regulator SEBI, through which it expects to sell 117 million shares, raising around Rs4,000 crore ($1 billion) in the process. The IPO will also result in the dilution of a 10 per cent stake for the company.

Enam Securities and DSP Merill Lynch, along with Citigroup Global Markets India, Kotak Mahindra Capital, HSBC Securities, JPMorgan India and Goldman Sachs (India) Securities will manage the issue.

Emaar-MGF is engaged in the development of properties in the residential, commercial, retail and hospitality sectors.

Based in Dubai, DAE was established in February 2006, and is currently engaged in building itself into a global aerospace, manufacturing and services corporation. It is currently establishing subsidiaries in six key sectors, spanning everything from research and development to manufacturing, maintenance, repair and overhaul, aircraft leasing and aerospace services.

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