Morgan Stanley Eyes Bandra Kurla Complex Investment
Morgan Stanley is contemplating a significant investment in Bandra Kurla Complex (BKC) in Mumbai. The financial firm intends to develop approximately 1.6 million sq. ft. of prime office territory. Should this ambitious deal come to fruition, it would signify Morgan Stanley's inaugural foray into India's rapidly expanding and dynamic commercial sector.
Morgan Stanley plans to invest in India
Morgan Stanley Real Estate Investing is actively exploring options to develop the aforementioned office space in the Bandra Kurla Complex in Mumbai. The Wadhwa Group, a prominent Mumbai-based real estate company, initiated construction on project. The project envisions the development of two additional commercial towers, with completion slated for the end of the upcoming year.
Although the transaction remains in its nascent stages, it would represent the premier investment by Morgan Stanley investors in the Indian commercial landscape. Previously, this renowned firm allocated $850 million to an Indian real estate project. It is important to note, though, that the previous project was primarily concentrated on housing. Therefore, this endeavor marks the first time the prestigious American firm would be investing in a commercial undertaking.
Morgan Stanley will; for the first time, invest in a commercial project in India.
According to a Reuters report dating back to December 2011, approximately $100 million to $125 million were reportedly diverted to Sheth Developers, a real estate enterprise headquartered in Mumbai. Currently, both the Wadhwa Group and Morgan Stanley have chosen not to issue any statements concerning the matter.
Furthermore, recent reports suggest that private equity investors currently are expressing restrained enthusiasm for investing in India's real estate market. Their investment volume has experienced a sharp decline. In 2012, the total investment in India reached $1.95 billion, substantially lower than the $9.8 billion invested in 2007, as reported by Venture Intelligence, a research firm.
As long as the involved firms maintain their silence on the matter, critical information, including intricate financial specifics, will remain shrouded in confidentiality and unavailable for public dissemination.
Despite a considerable 103.32% decline in Morgan Stanley's earning's per share this year, their shares demonstrated resilience, exhibiting an upswing in the current quarter. Morgan Stanley possesses 1.98 billion outstanding shares, with 1.55 billion shares actively traded on the open market exchange.