Emaar MGF

Emaar MGF

Type	Private
Industry	Real estate
Founded	February 2005
Key people	Sanjay Malhotra, CEO
Website	www.emaarmgf.com

Emaar MGF is a real-estate developer based in India and has projects across the country covering residential, commercial, and hospitality. It is the joint venture of Emaar Properties PJSC led by Mohamed Alabbar with Shravan Gupta's ^[1] MGF (Motor & General Finance) Developments Limited of India.^[2]

Sanjay Malhotra is the current CEO of the company. The company is currently undergoing a restructuring exercise, with the resignation of Shravan Gupta from the post of Executive Vice Chairman & Managing Director. Emaar has taken control of all the on-going projects of the company to ensure their completion at the earliest.

Since its inception in 2005, Emaar MGF ^[3] has invested in real estate development with a pan-India presence and operations spanning all key segments of the Indian real estate industry, including residential, commercial, retail and hospitality sectors.

Emaar MGF operations cover various aspects of real estate development, such as land identification and acquisition, project planning, designing, marketing and execution.^[4] At present, its focus is on the development of residential projects in Delhi NCR (particularly Gurgaon), Mohali, Chennai, Hyderabad and other key Indian State Capitals/Cities. The company has a large land bank/reserves with planned development spread over several million sq ft.^[5]

Hyderabad International Convention Center

Opened in December 2005, the Hyderabad International Convention Centre (HICC) is a convention facility.^[6] It was built by Cyberabad Convention Center Private Limited (CCCPL), a joint venture between the Dubai-based Emaar Properties and the (APIIC). Stretching across 15 acres (61,000 m²), the HICC is an integrated 291,000 sq ft (27,000 m²). facility managed by Accor. Located next to the HICC is the Novotel Hyderabad hotel, which opened in May 2006. The 287-room business hotel has also been developed by Emaar, and is managed by Accor. HICC offers 4,000 seating capacity with an in-built flexibility to expand to 6,500 seats. The HICC, built at a cost of US$39 million and the Novotel Hyderabad at a cost of US$27 million together constitute a total project investment of US$66 million. HICC is located adjacent to HITEC City, home to large national and international technology companies.

Commonwealth Games Village 2010

Among the initial projects to be completed and handed over, the Commonwealth Games Village is probably Delhi’s only purpose built, self-contained premium residential community. Located right next to the Akshardham Temple and just minutes away from the central business district – Connaught Place – it was developed by Emaar MGF – for the Commonwealth Games 2010 – under a project development agreement with the DDA.^[7]

Awards

Emaar MGF ^[8] receives green building honour for Commonwealth Games Village.^[9][10]

The Commonwealth Games Village, a residential project developed by Emaar MGF, has been conferred with the EPC World Award for 'Outstanding Contribution in Green Building Project- Real Estate Category'.^[11]

The project received the award during the 5th EPC World Awards 2014, which was held at The Ashok, New Delhi.^[12]

Sanjay Malhotra, Chief Financial Officer, Emaar MGF ^[13] Land Ltd. accepted the award on company's behalf from Dr. Mahesh Sharma, Minister of State of Culture and Tourism and Civil Aviation (Independent Charge) and Vishnu Deo Sai, Minister of State for Steel and Mining.

Demerger of Emaar MGF

On April 11, 2016, Emaar Properties decided to terminate its 11-year-old joint venture with MGF Developments, Emaar MGF Land Ltd. The joint venture will undergo reorganization through a demerger scheme, and Emaar Properties will drive the ongoing projects of the company in India, in order to lend greater focus to the operations of the company’s businesses and projects and for the purpose of capturing the potential for further growth and expansion.^[14]

Following this, Emaar MGF Land filed the demerger scheme in Delhi High Court on May 16, 2016.^[15]

EVC & MD Shravan Gupta steps down, CFO Sanjay Malhotra elevated to CEO position

Following the initiation of company restructuring, Shravan Gupta resigned from the post of Executive Vice Chairman & Managing Director, although he continues to act as director of the company.

Emaar MGF's Chief Financial officer (CFO) Sanjay Malhotra was elevated as the CEO, and two new board members were appointed as nominees of Emaar properties. As part of the restructuring, Emaar would take control of the company's ongoing projects to ensure completion of those projects at the earliest.^[16]

Status of ongoing projects

Emaar MGF communicated to its customers about initiating the process of demerger of the Company pursuant to a Scheme of Arrangement under Section 391-394 of the Companies Act, 1956 and filing such Scheme with Delhi High Court. To assure its customers about completion of ongoing projects, it also shared the target Completion schedules for all projects with achievement of specific milestones and uploaded the same on its website. The Company under the leadership of Emaar, re-assured its commitment to provide effective management to all the on-going projects ensuring completion at the earliest possible.^[17]

Receipt of occupancy certificates

In June 2016, Emaar MGF announced the receipt of occupation certificate for the first phase of Emerald Hills project in Gurgaon. The company received the occupancy for 413 units, and also claimed to have already handed over 150 plots in the project.^[18] Following this, the company also announced the receipt of completion certificate for the first phase of The Avenues project in Chennai in July 2016. The company set the timeline for handover of these units commencing October 2016.^[19]

Labour Deployment and delivery target of 3,000 flats by December 2017

In September 2016, Emaar MGF conveyed its plans to hand over about 3,000 flats in next 12 months, which will be its highest delivery in several years. It has fast tracked construction to achieve completion of ongoing projects such as Emerald Estate, Emerald Floor, Emerald Floor Premier, Palm Garden, Palm Terraces Select, Gurgaon Greens, Imperial Gardens in Gurgaon region, besides The Avenues and The Grace in Chennai region by December 2017. The company is aiming to start handing over several projects by October 2016, including The Grace and The Avenues in Chennai, followed by Emerald Hills.

As per Emaar MGF, it has deployed 8,000 construction labourers since September 2016 at its sites across India, as against 500 in April 2016. The company also aims to increase this workforce to five figures by December 2016 for speedy completion of the projects.^[20]

References