Japan realtor Sumitomo enters India, 1st overseas business in 20 yrs
NEW DELHI, NNA - An Indian subsidiary of Japan's Sumitomo Realty & Development Co. has received approval to lease a land plot in the heart of financial capital Mumbai, its first foray into overseas property development in around 20 years.
The Mumbai Metropolitan Region Development Authority issued an offer letter to Goisu Realty Pvt. Ltd., Sumitomo's local unit, allowing it to lease a 12,486-square-meter tract in the Bandra-Kurla Complex financial district in Mumbai for 22.38 billion rupees ($325 million) over a period of 80 years, said a statement released by the authority Wednesday.
The area is located in the center of the district near a planned station for both high-speed railway and rapid transit lines.
Sumitomo plans to build an office building with a floor space of about 100,000 square meters with an anticipated investment of around 70 billion yen ($650 million), including the land lease fee, a company spokesman told NNA on Wednesday.
Mumbai has been suffering a shortage of office buildings as new supply has been stagnating while domestic and foreign companies have constantly been entering the city, according to a statement released by the firm Wednesday.
After focusing on development projects in Tokyo, the Japanese developer turned its eyes overseas for bigger opportunities, searching promising cities for several years, the statement said.
The company has yet to decide when to start construction of the planned building and when to open it. (NNA/Kyodo)