DLF picks Frankfurt’s Fraport as partner for foray into airports

Real-estate developer DLF Ltd is attempting a fresh foray into airport modernization, joining the rush to cash in on infrastructure building in an economy expanding at a rate of more than 9% a year.
It has chosen Germany’s Fraport AG Frankfurt Airport Services Worldwide, the owner and manager of Frankfurt Airport, as its partner.
According to DLF’s filing with the stock market regulator, as part of a planned sale of 175 million shares to the public, the two companies signed a memorandum of cooperation in April to explore airport projects. A special purpose vehicle, “DLF Fraport SPV”, has been set up to focus on the development and management of airports in India. The shareholding of DLF and Fraport in the special purpose vehicle (SPV) will at least be 26% each.
Rajeev Talwar, group executive director, DLF, confirmed the development. “When the memorandum of cooperation becomes an agreement, we could have other partners too in the SPV,” he said. He, however, declined to give names of the partners or the investment details, saying it was too early to comment on it.
Fraport is already present in India through the consortium it formed with infrastructure conglomerate GMR Group and the India Development Fund to bid for the modernization of the Mumbai and Delhi airports.
04/06/07 Livemint

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Categories: Airports Jun 2007, Foreign Jun 2007