Monday, September 4 2006 11:55 Hrs (IST) - World Time -

Jerusalem: India's real estate boom is now attracting foreign players with two major Israeli firms joining hands to invest US$ 100 million in its market.

The IDB group, one of the largest private business enterprises in Israel, has formed a joint venture with the Electra Real Estate in which both the Israeli companies will own 45 percent share each. An already active unnamed Israeli company in India would hold the remaining 10 percent stake, a media report said here.

The Israeli companies will be working with Indian real estate group Murugappa and are currently negotiating the construction of thousands of residential units and tens of thousands of square meters of commercial and office space, mostly in Chennai, daily Ha'aretz reported.

"Nochi Dankner, the CEO of IDB Group, recently visited India and met with executives of the Murugappa group in this regard," it said.

The groups subsidiary, Property & Building, will be handling the Indian real estate venture. As per the arrangement being worked out, Murugappa, the Indian partner, will hold a 10 percent stake in a planned second-stage joint venture.

Murugappa reportedly has 28 subsidiaries and a payroll of 30,000 with an annual turnover of US$ 1.5-2 billion.