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Manchester lawyer advise AAIM India on £350 million project
27/06/2008

Corporate lawyers from Manchester firm Brabners Chaffe Street advised aAIM India on funding for a £350 million development project in India's central region.

Partners Mike Blood and Sam Mabon assisted the fund, which is part of property investment company aAIM Group, on securing equity commitment for an eight million sq ft mixed-use scheme to be developed in the city of Nagpur.

The overall project will span six years, include 3000 residences, a college, hospital and related infrastructure.

This is the first Foreign Direct Investment in an Integrated Township under the Special Township Policy, where most of the planning decisions are delegated to the development joint venture.

Mike Blood commented: “This is a landmark property development and heralds an exciting future for the region of central India.

“It was also a multinational deal in the truest sense, with a complex structure involving the jurisdictions of the UK, Jersey and Mauritius as well as India. Our role was to ensure clarity in the profit sharing structure and control and ultimate ownership of the development joint venture.

“Full compliance and consistency with the detail of the India-based documents and regulations was also essential.”

Nagpur has a population of four million and was selected as the site for the Indian Government's 10,000 acre new National IT and logistics centre.

The city, the largest in central India, is set for a period of sustained development, of which aAIM India's development is a central part.

For the Nagpur project, the group has entered into a joint venture with an established, prominent Indian developer.

Anurag Chaturvedi, chief executive of aAIM India, commented: “This is a landmark day for aAIM India. We are very pleased with the joint venture we have with the Indian developer; their consistent track record of success has been a significant factor in our decision to partner with them.

“This is only the second development of its kind in India approved under a new progressive government scheme. The commercial attractiveness of the proposed development along with the strong execution capabilities of our partner should provide investors with confidence in our ability to source opportunities that will continue to offer high risk-adjusted returns.”

Other advisors to aAIM India included Mike Jeffrey of Carey Olsen in Jersey, Anand Gujadhur from Mauritius and AZB in India.

Allen & Overy advised a significant shareholder of aAIM India.

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