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Garnet Construction in international tie-up to promote Navi Mumbai township project

Mumbai, India, February 21, 2007 - Garnet Construction Ltd has announced that the Company has entered into an exclusive global marketing alliance with the Sternon Group (Dubai-based real estate developers, builders and promoters) to market its residential and commercial projects to prospective buyers around the world.


Mr Arun Kumar Kedia (Director of the Company) and Ms. Ludmila Sclifos (C.E.O. Sternon Group) jointly announced the first-of-its-kind strategic alliance wherein the Indian developer will leverage a global partner to market its quality projects to the rest of the world. This Is the first such exclusive marketing alliance initiative for the Sternon Group in the Indian sub�continent.


The Sternon Group, which has the distinction of successfully serving the needs of customers located in more than 28 different countries, will have the exclusive rights to market the Company's mega residential and commercial township project, 'Magic Hills�. spanning 400 acres at the Mumbai-Pune Express Highway near Panvel in Navi Mumbai. The project is valued at Rs 1,200 crore with the residential portion (250 acres) accounting for Rs 900 crore.


The 'Magic Hills' residential project offers plots, row houses and bungalows. The project also comprises the information technology commercial development portion (75 acres) and educational institution portion (75 acres). This one-of-its-kind township, which combines classic traditions and modern lifestyle, comprises all the modem amenities including recreational, retailing and educational facilities.


The 'Magic Hills' project is being positioned as the 'pride of the Mumbai-Pune Expressway' as it is the first-of-its-kind project conceived herein. A combination of classic traditions and modem lifestyle, it targets all generations. Located on the Mumbai-Pune expressway, it is merely 28 km from Navi Mumbai and hardly 20 minutes from Panvel international airport and the railway station. It gives the comfort and coziness of a home that discerning people desire; fresh air filled with the scent of flowers; shades of the mountains; and panoramic view of nature.


The Sternon Group will invest upto US$ 3-4 million in this project. The Sternon Group, which has offices in the United States (U.S.), the United Kingdom (U.K.), the Middle East and India, will market the �Magic Hills� project as an ideal home for investors, holiday-seekers and Non-Resident Indian families.


Mr. Arun Kumar Kedia, Director, of the Company said, "Global buyers are showing a lot of interest in Indian properties and our exclusive marketing alliance with the Sternon Group is a step in this direction, We have a good working relationship with the Sternon Group, which leveraged its management and marketing strategies to successfully market our projects such as the Crystal Springs (Garnet Resorts) in Dubai and around the globe. Due to the Sternon Group's quality performance, reliability and positive response, the Company has now decided to enter into a formal global marketing tie-up for 3 years. We are confident that it will help us strengthen our global marketing network attract discerning buyers from overseas and ensure faster execution of sales at higher values. This step will help us achieve our ambitious target of a topline of Rs 125 crore by FY08."


The Company has recently announced that it has decided to raise US$ 60 million by way of foreign currency convertible bonds or through preferential basis or through private placement among qualified institutional buyers or through any other permissible mode available with the Company.



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