Mitsui Fudosan to embark on office buildings development in India
NEW DELHI, NNA - Japanese real estate company Mitsui Fudosan Co. will embark on the development of four office buildings in India, its first such a project in Asia, amid growing demand from high-tech businesses.
Mitsui Fudosan and its local partner Millennia Realtors Pvt. Ltd., known as RMZ Corp. Group, have made a fifty-fifty investment in the project for an undisclosed sum, the Japanese company said in a statement on Wednesday. Mitsui Fudosan will manage the undertaking through its Singapore-based subsidiary Mitsui Fudosan (Asia) Pte. Ltd.
The four office buildings will be developed in RMZ’s IT park called “RMZ Ecoworld” in southeastern Bangalore, a hub for high-tech companies, also known as the “Silicon Valley of India,” according to the statement.
The project comprises four 12-story buildings with a total leasable floor of about 330,000 square meters on an 82,000-square meter site. The construction is scheduled to start by the end of the year and completed in 2023. Plans are for the completion by 2022 of the first two buildings with a leasable floor space of 160,000 square meters, followed by another two buildings with 170,000 square meters by 2023.
Mitsui Fudosan is already looking for tenants for the project. “We received some inquiries, although we have yet to make a contract with them,” a company spokesman in Tokyo told NNA on Wednesday.
Two zones of RMZ Ecoworld are already operational with a leasable floor of about 660,000 square meters housing a community of about 60,000 workers hailing from companies such as global hi-tech businesses, financial institutions, and consulting firms.
The demand for office rents in India has been growing. New rents of offices in eight major cities of India in 2019 jumped 27 percent from a year earlier to a record high of 5.62 million square meters, while home sales edged up only 1 percent to 245,861 units, according to real estate consulting firm Knight Frank India Pvt. Ltd.
“We intend to develop office buildings in other cities than Bangalore,” said the spokesman, adding that the real estate company will also consider tapping into that segment in other Asian countries.
The company has developed other real estate projects such as commercial facilities, housings, hotels, and logistic facilities in Thailand, Malaysia, Indonesia, the Philippines, China, Taiwan.