Real Estate

FRANKFURT: Fraport is looking to strike multiple partnerships in India with a minimum of 26% equity stake in every future airport project in the country. Fraport, which is a Frankfurt-based international airport operator, has 10% stake in the GMR-led consortium involved in the modernisation of the international airport in Delhi. This apart, Fraport has also signed a separate agreement of partnership for airport development projects with real estate group DLF. While the agreement with DLF involves exclusivity rights for projects in particular geographies within India, Fraport is open to tie-ups with different players in other regions. "Our India strategy is very clear. We want to have at least 26% equity stake in any project that we get involved. In Delhi, we have only 10%, but that is just a door-opener for us into India. We would form joint ventures for greenfield or airport modernisation projects with local players with whom we see a synergy depending on the region," said Fraport senior executive manager (global investments & management) Christoph Nanke. He added: "While we are considering various projects, we would prefer to have a package deal where we get the rights for development in a few airports in a particular region." While declining to give details of the projects wherein Fraport is looking to bid, Klaus Jeschke, who is part of the India management team for Fraport, indicated that Goa and Gujarat are on Fraport’s radar. "As against the traditional approach where we developed an airport hub, in our new strategy, we are looking to develop an entire airport city. Instead of viewing land as space and infrastructure, we look at it as an opportunity for real estate management and development," said Mr Jeschke. The $2.14-billion Fraport has identified India, China and the Middle East as key focus areas for international airport projects in the near future. In its agreement with DLF, the airport projects in which Fraport planned to bid together included Chennai, which has now been given to Airports Authority of India. In addition, the venture with DLF also includes plans for a general aviation airport around Delhi. A general aviation airport exclusively caters to private and business jets and chartered flights as against those that allows scheduled airlines. Source: http://economictimes.indiatimes.com