Wadhwa Group is in talks with Japan's Marubeni Corporation to set up a dedicated platform to acquire new real estate projects and redevelopment of residential societies in Mumbai.
Marubeni is already in partnership with Wadhwa Group. In 2020, it agreed to invest in a real estate developer's project of about 1 million sq ft in Mumbai. The investment was Marubeni's maiden investment in the Indian real estate sector.
A spokesperson of Marubeni said that besides the company's focus on Japan and China, it is investing in India as the property market is surging in India.
Wadhwa Group is looking towards the redevelopment of oil and dilapidated tenanted projects in India's commercial market.
The company has set up a team to evaluate and acquire redevelopment projects in South Mumbai, Worli and Bandra to Versova.
Managing Director of Wadhwa Group, Navin Makhija, told the media that the company is in advanced discussion with several societies in Mumbai and targets to begin these projects in about six to nine months. These residential societies and their financial investors are interested in handing over the project to the company.
The company is looking forward to the redevelopment sector as a major part of the company's portfolio.
He said that the timely delivery of the projects is a concerning factor because, in the past, many projects have already been delayed due to disagreement between the tenants and the developer. So, transparency and confidence in the developer executing the project are important.
It is looking at medium to large-sized societies for development and has earmarked an initial investment of about Rs 300 crore in Phase-I of the development project.
For Marubeni Corporation, India might become a major destination for its foreign real estate business.
The Japanese conglomerates' activities in India will not just be confined to smart cities promotion and other real estate projects. It plans to venture into related development businesses such as social infrastructure maintenance, new sales channels and services.