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The Project, which will be developed through an Indian company to be heldin equal parts by EMI and the Partner (the "JV Company"), will be built in anupscale section of Bangalore, on an area of approximately 200 acres (by way ofdirect ownership) and additional areas through joint development rights. TheProject is planned to include (i) high class residential neighborhoods withamenities such as a golf course, club houses, swimming pools, tennis courts,sports facilities and other recreation areas; (ii) office complexes and ITparks; (iii) a luxury 5 star+ hotel; (iv) a serviced apartments facility; (v)a hospital; and (vi) a major retail facility. The total built up area of theentire planned project will exceed 2 million square meters (approximately 21million square feet), subject to obtaining the requisite permits and approvalsunder applicable law.
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Construction of the Project is anticipated to commence within the nexttwelve months, and will be executed in stages to be completed within 3 to 5years thereafter. The Project is the largest development project undertaken inthe Bangalore area to date.
Consummation of the transaction will be accomplished in stages, and issubject to the fulfillment of certain conditions. EMI previously paid anadvance of approximately $50 million towards the purchase price of the land,pursuant to the provisions of the Framework Heads of Terms signed on June 5,2007 (as reported in the press release dated June 7, 2007).
The total anticipated investment by EMI and its subsidiaries in theacquisition of the Project land is estimated to exceed $ 150 million,depending on the final area of land to be acquired. Based on the currentpreliminary designs and market assessments, it is anticipated that therevenues generated from the Project will exceed $4 billion.
EMI intends to offer to its controlled subsidiary company, Plaza CentersNV (LSE: PLAZ) to take up a 50% participation in EMI's share of the jointventure. Plaza Centers' participation requires the approval of its variouscorporate organs.
The Chairman of the Board of Directors of the Company, Mr. MordechayZisser, commented, "We are extremely pleased to announce the signing ofbinding and definitive agreements with a joint venture partner for this hugeproject, which is impressive in its scope even by Indian standards, and willcertainly be the largest of its kind in Bangalore. This project also signalsthe expansion of the focus of our Indian activities beyond shopping malls andhotels to include up-market residential construction with ancillary amenities,as well as commercial units and office complexes, and hospitals. The Companybrings with it twelve years of experience from its activities in Europe, wherethe Elbit Imaging Group through its subsidiary Plaza Centers is now theleading developer of shopping and entertainment centers on that continent. Webelieve that this wealth of know-how and expertise will assist the Group inattaining a similar standing on the Indian sub-continent."
The Executive Vice Chairman of the Board of Directors of the Company, Mr.Abraham (Rami) Goren, who heads the Company's activities in India, commented,"The signing of these agreements marks a significant milestone in theconsiderable efforts of the Company over the course of the last eighteenmonths to establish a foothold in the challenging Indian market. We arejoining forces with one of the most respected and accomplished propertydevelopers in Bangalore, to jointly execute the largest and most prestigiousproject of its type,
