Japan’s Marubeni in Talks with Wadhwa Group For Real Estate Investment Platform
Realty developer Wadhwa Group is in advanced talks with Japanese institutional investor Marubeni Corp to set up a dedicated platform to acquire new projects and redevelopment of residential societies in Mumbai. This is the first time a global entity is looking to take financial exposure to execution of such redevelopment projects. Marubeni already has a partnership with the Wadhwa Group. Last year, it entered into an agreement to invest in the realty developer’s nearly 1-millionsq-ft residential project, Atmosphere, in Mumbai’s Mulund suburb. That was Marubeni’s maiden investment in Indian real estate. “In addition to our focus on Japan and China, we are investing in India as the property market here offers strong growth potential. Based on the response to our existing engagement with the Wadhwa Group, we are looking to take this partnership further,” said a Marubeni spokesperson. The Wadhwa Group is eyeing redevelopment of old and dilapidated tenanted projects in India’s commercial capital as a growth opportunity for the company. It has already set up a team to evaluate and acquire such redevelopment projects in South Mumbai and along the western belt of the city, including Worli and Bandra to Versova. “We are in advanced discussions with several societies at Mumbai’s prime locations and aim to kick start these projects in 6-9 months. Based on our execution record, these societies and existing financial investors in the project have shown interest in handing over the project to us. We are actively looking at making redevelopment vertical a key part of our portfolio in the near future,” Wadhwa Group Managing Director Navin Makhija, while confirming Marubeni’s interest in the separate investment platform. According to Makhija, timely delivery of these redevelopment projects is the most concerning factor for these societies, as many such projects have faced delays in the past due to tug of war between tenants and the developer. Therefore, transparency and confidence in the developer executing the project is crucial. The company is looking at mid- to large-sized societies and tenanted societies for development and has earmarked an initial investment of over Rs 300 crore for the first phase of such developments.
Tags : News/Views The Wadhwa Group residential societies real estate investment Redevelopment Projects Marubeni Corp Financial Investors