Marubeni enters Indian real estate market in collaboration with Wadha
TOKYO, NNA – Japanese trading giant Marubeni Corp. has partnered with a major Indian real estate developer to participate in a condominium development project on the outskirts of Mumbai, capitalizing on growing demand for housing among middle-class citizens.
The move is the company’s first step toward making inroads into the rapidly growing Indian real estate market.
The Tokyo-based trading house will participate in the “Atmosphere Project” on the outskirts of Mumbai, worth approximately 20 billion yen ($184 million), being executed by its partner, Wadhwa Group Holdings Pvt. Ltd., and other firms, it said in a statement on Monday.
The company regards India, which is enjoying steady economic growth, as a potentially key market for its property business overseas, Marubeni spokesman Eigo Takagi in Tokyo told NNA.
The population of Greater Metropolitan Mumbai totals some 23 million. “We are determined to grow the Indian market as one of the pillars of our overseas real estate business,” he said.
The project, which commenced this month, comprises three 47-story condominium complexes housing about 700 apartments on a 25,000-square-meter plot of land, and is scheduled for completion in June 2024.
Marubeni will invest in the project by subscribing to non-convertible debentures issued by Atmosphere Realty Pvt. Ltd., the entity to undertake the project. The trading house has stopped short of disclosing the specific amount it will invest in the project.
The company points out that Greater Metropolitan Mumbai, where the population of the middle-class is rapidly increasing, is one of the largest residential markets in India. It also sees a major business opportunity in the country’s financial center.
Marubeni has rich experience in developing and selling real estate in China, Thailand, Singapore, Malaysia, the Philippines and Vietnam among other countries and regions.
The trading giant is determined to take advantage of its expertise in not only developing residential real estate but also complex facilities to invest in multiple projects being undertaken by Wadhwa, a major developer based in the city in the western state of Maharashtra.