Share Analysis – Quality, Valuation Zone, Price Trend & DeciZen Rating

Emaar MGF Land was incorporated as Emaar MGF Land Private Limited on February 18, 2005 under the Companies Act. Pursuant to a special resolution of the shareholders of the company at an extraordinary general meeting held on August 8, 2007, the Company became a public limited company and the name of the Company was changed to Emaar MGF Land Limited to reflect the change in the constitution of the Company from a private limited company to a public limited company. The fresh certificate of incorporation to reflect the new name was issued by the RoC on August 13, 2007.  Pursuant to a Board resolution dated August 22, 2007, the registered office of the Company was changed from 17-B, MGF House, Asaf Ali Road, New Delhi 110 002, India to ECE House, 28, Kasturba Gandhi Marg, New Delhi 110 001, India, with effect from September 5, 2007 due to business requirements.

The Company was formed pursuant to a Joint Venture Agreement dated December 18, 2004, as amended in December 2005 and September 2007 (the “Emaar MGF Joint Venture Agreement”), among Emaar Properties PJSC (“Emaar”), MGF Developments Limited (“MGF”) and Sareen Estates Private Limited. Emaar, a public joint stock company listed on the Dubai Financial Market, is one of the world’s leading real estate companies. In addition to the UAE, India and Saudi Arabia, Emaar has projects in various countries, including in Egypt, Turkey, Morocco, the United States of America, Jordan and Pakistan.

MGF is engaged in the field of real estate development in Northern India. It is currently one of the leading shopping mall developers in Northern India, with approximately 2 million square feet of retail space having been delivered and approximately 3 million square feet of retail space and above 1 million square feet of residential space under development as of August 31, 2010. The company together with the subsidiaries, the companies owned by EMGF and the Joint Venture is engaged in the development of integrated townships, housing, built-up infrastructure and construction-development projects. They engage in the development of integrated townships, housing, built-up infrastructure and other construction-development projects and their operations span all key segments of the Indian real estate industry, namely the residential, commercial, retail and hospitality sectors. Their operations encompass various aspects of real estate development, such as land identification and acquisition, project planning, designing, marketing and execution. At present, their focus is on the development of residential projects in Delhi and elsewhere in the NCR, Mohali, Hyderabad, Chennai and other key Indian cities.

They commenced their operations in India in February 2005. As of August 31, 2010, they had Land Reserves across India approximating 11,365 acres, of which they presently have development plans for approximately 7,896 acres, which they expect will provide a Developable Area of approximately 469 million square feet. Of this Developable Area, approximately 437 million square feet represents their economic interest. They estimate that their existing Land Reserves identified for development as of August 31, 2010 will provide them with a proposed Saleable Area of approximately 335 million square feet of residential properties, 75 million square feet of commercial properties and four million square feet of retail properties. In addition, as part of their hospitality business, they have identified 23 projects with a planned Developable Area of approximately 22 million square feet (which is equivalent to approximately 3,935 keys) that it propose to develop in the future. They continuously evaluate the potential of their Land Reserves and plan the development of their Land Reserves in line with prevailing market conditions.

They aim to develop ‘integrated master planned communities’ which comprise residential projects along with one or more community facilities, including retail and commercial developments, schools and hospitals, enabling a “live, work and play” theme within the same development. As of August 31, 2010, they had 38 residential, commercial and retail projects under various stages of development and in these projects they had launched an aggregate Saleable Area of approximately 28.2 million square feet. They are a joint venture between Emaar Properties PJSC (“Emaar”) of Dubai and MGF Development Limited (“MGF”) of India. Emaar is one of the world’s leading real estate companies, having developed approximately 99 million square feet of real estate across residential, commercial and other business segments and with operations in 14 countries, as of August 31, 2010. MGF has established itself as one of the key players in retail real estate development in Northern India and has delivered approximately two million square feet of retail space, as of August 31, 2010.

In their residential business line, their main focus is on developing master planned communities in phases, wherein they design, build and sell a wide range of properties across different price points, including plots, villas, independent villa floors and apartments of varying sizes and specifications. They are developing large residential projects such as the Commonwealth Games Village in Delhi, The Palm Springs, Palm Drive, Palm Hills, Emerald Hills and Emerald Estate in Gurgaon, the Excelsior in Hyderabad, Mohali Hills in Mohali and Esplanade in Chennai. As of August 31, 2010, they had 33 residential projects under development with an aggregate Saleable Area of approximately 26.3 million square feet spread across seven cities. As of August 31, 2010, 8,804 units in these projects had been booked for sale by customers.

In their commercial business line, their focus is on developing built-to-suit and multi-tenanted developments targeted towards a range of customers, from individual users and small companies, to large corporate groups in various sectors. As of August 31, 2010, they had four commercial projects under development with an aggregate Saleable Area of approximately 1.3 million square feet in these projects. Their commercial properties include both stand alone commercial sites and properties forming part of their integrated master planned communities. In their retail business line, their focus is on developing shopping centers, large regional destination malls and retail space at their luxury hotel developments. As of August 31, 2010, they had one retail project under development with an aggregate Saleable Area of approximately 0.5 million square feet in this project. Their future retail plans include both stand alone sites and properties forming part of their integrated master planned communities.

In the hospitality business line, in intend to develop hotels in India across various segments including the luxury and up-market segments. As of August 31, 2010, it had completed development of one five star hotel with 90 keys in Jaipur, which is being operated by Fortune Park Hotels Limited, a subsidiary of ITC Limited. Further, it has two hotel projects which are in the initial stages of development. the company propose to commence developing these projects once it has obtained financial closure for the projects.

As a result of the global economic downturn, the Indian real estate industry experienced a slowdown during fiscal year 2009 and consequently, the demand for real estate fell substantially during this period. Since May 2009, the Indian real estate market has shown signs of recovery and the number of units booked for sale in the projects has increased. In fiscal year 2010, 3,774 units were booked for sale in the aggregate across its current projects. In the period from April 1, 2010 to August 31, 2010, it launched four residential projects with an aggregate Saleable Area of approximately 1.8 million square feet and during this period 1,614 units were booked for sale in the aggregate across its current projects.

Milestones:

• December 2004 - Emaar, MGF and Sareen Estates Private Limited entered into the Emaar MGF Joint Venture Agreement for the formation and governance of the Company.
• February 2005 - Incorporation of the Company.
• May 2005 - Grant of approval by the FIPB for investment by Emaar in the Company.
• November 2005 - The Company entered into a Memorandum of Understanding with the Government of Punjab to develop approximately 5,000 acres of land in various parts of Punjab for setting up urban and rural infrastructure projects, integrated townships, infrastructure in hospitality, information technology, recreation and entertainment.
• August 2006 - Launch of the Mohali Hills – The Views project in Mohali.
• September 2006 - Launch of the Mohali Hills – Plots and the Mohali Hills – Central Plaza projects in Mohali.
• November 2006 - The Company entered into a Joint Venture Agreement with AAPC Singapore Pte Limited (formerly AAPC Hotels Management Pte Limited), a part of the France-based Accor SA Group of companies, to set up a joint venture company to develop/own and operate budget hotels in India under the brand name “Formule 1”.
• January 2007 - Launch of The Palm Springs Apartments and The Palm Springs Villa projects in Gurgaon.
• April 2007 - Launch of The Palm Springs Plaza project in Gurgaon.
• July 2007 - The Company, through Emaar MGF Construction Private Limited, was declared the successful bidder by the Delhi Development Authority (“DDA”) for developing the residential project for the Commonwealth Games Village in New Delhi. The project development agreement in respect of this project with the DDA was signed on September 14, 2007.
• July 2007 - The Company, through its Subsidiary, entered into an operating agreement with Marriott Hotels India Private Limited for management and operation of the proposed “Courtyard by Marriott” branded hotel in Amritsar.
• August 2007 - The Company entered into a Letter of Intent with Four Seasons Hotels Limited for the development, management and operation of a luxury hotel and related facilities to be developed as part of an integrated master planned community called “Boulder Hills” in Hyderabad.
• August 2007 - The Company entered into a Management Agreement with InterContinental Hotels Group (India) Private Limited for the management of the Holiday Inn Dehradun and Dehradun Convention Centre owned by the Company.
• September 2007 - Launch of Mohali Hills - The Villas project in Mohali.
• October 2007 - Launch of The Palm Square project in Gurgaon and The Sky Terraces, The Villas, Garden Terraces and the Premier Terraces at The Palm Drive in Gurgaon.
• November 2007 - Launch of Esplanade – Apartments project in Chennai.
• January 2008 - The Company entered into a Letter of Intent with Four Seasons Hotels Limited for the development, management and operation of proposed hotels under the “Four Seasons” brand in Kerala.
• February 2008 - Due to the adverse market conditions, the Company withdrew its proposed initial public offering.
• March 2008 - Launch of the first phase of The Excelsior at Boulder Hills in Hyderabad.
• May 2008 - The Company entered into a Joint Venture Agreement with HP India Holdings Limited, an affiliate of Global Hyatt Corporation, to set up a joint venture company to develop a minimum of 20 hotels, under the brand name “Hyatt Place”, across India within a time frame of 10 years from the date of formation of the joint venture company.
• June 2008 - Launch of the Commonwealth Games Village project in Delhi, The Terraces project in Mohali and the Enclave in Gurgaon.
• July 2008 - Launch of commercial project Digital Greens in Gurgaon.
• July 2008 - The Company entered into an investment agreement with Emaar to participate and invest in projects through special purpose vehicles for the development of Land Reserves held by the Company. Pursuant to such agreement, Emaar Mauritius invested $50 million each in two of the Companies owned by EMGF.
• September 2008 - Launch of the first phase of the Indore Greens project in Indore.
• October 2008 - Launch of the Boulder Hills - Villa (Plots) project in Hyderabad.
• December 2008 - The Company entered into an agreement with Hyatt International Corporation to operate and manage a hotel in Goa under the brand name “Hyatt Regency”.
• March 2009 - Launch of the Jaipur Greens project in Jaipur.
• April 2009 - Further equity investment of $32.5 million in the Company by Emaar through Emaar Mauritius.
• May 2009 - The Company entered into an agreement with the DDA for the purchase by the DDA of the Company’s marketing rights in respect of 333 units at the Commonwealth Games Village.
• May 2009 - Launch of The Enclave at The Palm Drive in Gurgaon.
• June 2009 - The Fortune Select Metropolitan Hotel, Jaipur commenced operations.
• June 2009 - Launch of the Emerald– Floors, Emerald Hills – Spanish Villas and Emerald Hills - Plots projects in Gurgaon.
• July 2009 - Launch of the Palm Studios project in Gurgaon.
• August 2009 - Launch of The Bungalows project in Mohali, the first phase of the Emerald Estate at Emerald Hills in Gurgaon.
• September 2009 - Launch of Emerald Floors Premier at Emerald Hills in Gurgaon and The Terraces Premier at Mohali Hills in Mohali.
• October 2009 - Launch of the Emerald Plaza commercial project in Gurgaon.
• December 2009 - Launch of The Avenues at The Esplanade in Chennai.
• March 2010 - Launch of Palm Hills and Palm Terraces in Gurgaon.
• May 2010 - Launch of Emerald Floors Premier II in Gurgaon.
• May 2010 - The Company obtained licenses for 219.38 acres in Gurgaon.
• June 2010 - Launch of Palm Terraces Select in Gurgaon and The Esplanade II in Chennai.
• July 2010 - Handover of the Commonwealth Games Village project and the apartments to the Delhi Development Authority.
• August 2010 - Launch of exclusive plots Mohali Hills – Plots II at Mohali.