Reliance Group and Dalian Wanda Group Join Forces in Indian Real Estate
In a landmark move, China's largest real estate firm, Dalian Wanda Group, has collaborated with Anil Ambani's Reliance Group to co-develop several real estate projects in Mumbai and Hyderabad. This strategic partnership marks the first-ever Chinese real estate investment in India.
A New Chapter in Indian Real Estate
Under this joint venture, Reliance Group will provide the land, while Dalian Wanda Group will be responsible for constructing and developing the projects. The initial project is slated to launch in Navi Mumbai, with plans to build integrated township projects combining approximately 20 million sq. ft. across both Navi Mumbai and Hyderabad.
Key Project Details
- First Joint Venture: Located in Dhirubhai Ambani Knowledge City (DAKC), Navi Mumbai, spanning 135 acres.
- Development Plans: Nearly 10 million sq. ft. of space to be developed in DAKC, with R-Com as the primary occupant.
- Estimated Cost: Rs.6000 Cr to Rs.7500 Cr for both Hyderabad and Navi Mumbai projects (as reported by Mint, quoting a senior Reliance executive).
Industry Reaction
Real estate experts have welcomed this move, citing the potential for significant investments from China, the world's second-largest economy. Anshuman Magazine, CMD of CB Richard Ellis, South Asia, highlighted China's substantial surplus for investments.
Expanding Horizons
Beyond real estate, Ambani's Reliance MediaWorks is also set to collaborate with the Chinese firm in the multiplex business, both in India and the USA. Following Wanda Group's $2.6 billion acquisition of US multiplex operator AMC Entertainment, this partnership further solidifies their position in the global entertainment sector.
Strategic Debt Reduction
This deal is expected to aid Reliance Group in reducing its debt burden by monetizing its land parcels. Previous attempts, including divesting telecom tower assets and listing its undersea cables unit in Singapore, were unsuccessful. The partnership with Wanda Group offers a new avenue for debt alleviation.
Quotes and Statements
Anil Ambani emphasized that Reliance has become the largest trading partner between China and India, with this tie-up being a key component of their expansion strategy.