SINGAPORE (Dec 16): Keppel Land will be acquiring a 49% stake in joint venture company Kapstone Constructions for INR 4.09 billion ($78.2 million) to jointly develop the 51.4-hectare Urbania integrated township in Mumbai, India.

The joint venture will see Keppel Land, the property arm of Keppel Corporation, partner with leading Indian developer Rustomjee Group.

Since its launch in 2006, the Urbania township has housed 2,700 residential units.

Upon completion of the acquisition, Keppel Land and Rustomjee Group will jointly develop an addition of about 7,400 homes and retail units with a total gross floor area of approximately 5 million sqft.

The development cost for the first phase under the joint venture, which will comprise approximately 460 residential units, is expected to be approximately INR 4.02 billion.

Completion of the acquisition is expected to take place around the first quarter of 2020.

In a joint press release on Sunday, Keppel Land and Rustomjee Group say this is the first such collaboration between a Singaporean developer and an Indian developer for a township in the Mumbai Metropolitan Region, which is among India’s fastest-growing regions.

“The partnership has landed on a rare opportunity of a development of such scale in Mumbai, which is experiencing rapid demand for quality homes,” says Ho Kiam Kheong, President (India), Keppel Land.

“We will leverage the Rustomjee Group’s extensive network and deep knowledge of the local property market, as well as Keppel Land’s international experience and strong execution capabilities to develop a highly liveable and vibrant township,” he adds.

We are confident that this joint venture will be a win-win partnership. This is a beginning of two large developers coming together to build a strong partnership in the Mumbai Metropolitian Region market and we look forward to great growth together,” says Boman Irani, chairman of the Rustomjee Group.

Share in Keppel Corp closed 1 cent higher at $6.72 on Friday.