DELHI: Realty firm Ansal BuildwellBSE -2.95 % today announced a tie up with Bahrain-based VKL Holdings under which the two firms would invest $100 million each to develop housing and infrastructure projects in India and Bahrain.
Ansal Buildwell signed a memorandum of understanding (MoU) with VKL Holdings and group firm Al Namal to explore opportunities of investment in India and Bahrain.
The MoU would focus on joint development in realty and infrastructure sectors.
"Developers from India have not gone to Bahrain. We are joining hands with VKL Holdings to invest there," Ansal Buildwell Chairman Gopal Ansal told reporters here.
Elaborating on MoU, company's general manager Ranjeev Kalia said that Ansal Buildwell would invest $100 million in Bahrain while VK Holdings would invest $100 million in India. The first project would be in Delhi-NCR.
VKL Holdings Director- Business Development Mohammad Mansoor said the company has invested about Rs 1,000 crore in real estate and hospitality projects in South India. "With this MoU, we will enter into North India."
Ansal said the company has decided to foray in Bahrain market due to "hassles" in India in getting clearance for projects and tough competition.
"Banks are not financing. There are huge delays in getting sanctions. These things have pushed us to go overseas," Ansal said.
VKL Holdings and Al-Namal group were set up by Varghese Kurien, the largest Indian investor in Bahrain. They are engaged in real estate, property development and management, construction, health and hospitality divisions.
Bahrain is an important trading partner for India with non-oil bilateral trade in 2012-13 exceeding $1.3 billion. Over 350,000 Indian nationals work in Bahrain.