Multi Jurisdiction Reach

Client Brief:
An established overseas investor.

Situation:
Despite the 2013 economic slowdown, India’s $2 trillion financial system is still recording an annual growth of over 5%. Global companies aspire to become a part of the growing Indian market, which is expected to be valued at $4 trillion by 2020.

An overseas investor was considering setting up a manufacturing plant in India and wanted to acquire land. They contacted a few real estate brokers, who offered them land in a Tier-II city.

Since the investor was unaware of local estate prices, which may vary significantly, they sought assistance from Alea in conducting due diligence to ensure they were not overpaying. The organization also wanted to ascertain that the title and regulatory matters were in order before the transaction is conducted.

Alea’s Role:
Alea directed extensive research of land owners and evaluated regulations involving the sale of land in the particular state. To establish the authenticity of land records and prevailing prices, Alea worked with local resources where the investor was considering setting up the plant.

The team verified information with relevant regulations, district level officials, consultants and brokers in the area. A site visit was conducted to ensure the land in question had not been trespassed.

While there were no concerns with the land title, multiple sources validated that average price of the land was a third of what was quoted to the investor.

Conclusion:
Alea helped negotiate the price of land and saved the client a large sum of capital.