With the tie up with the Reliance India Chinese Real Estate Firm Dalian Wanda Group enters the real estate market of India.
Anil Ambani’s Reliance Group has tied up with Dalian Wanda Group. Both the Indian and the Chinese firms will jointly work for two residential projects. One of their real estate projects will be in Mumbai and the other will be in Hyderabad.
Dalian Wanda Group is the largest real estate firm in China. This is the first time a Chinese real estate firm enters the land of India. The land parcels will be provided by Anil Ambani’s Reliance Group. The Chinese Real Estate Firm will have to build up the projects.
The Chinese real estate firm will be constructing and developing the land parcels owned by Reliance India. Their debut joint real estate venture will be in Navi Mumbai. The project will be constructed in the land parcels of Reliance India.
Reliance India has land parcels in both Navi Mumbai and Hyderabad. The groups will be delivering integrated township projects.
They will have their debut project in Dhirubhai Ambani Knowledge City (DAKC) which is located in Navi Mumbai’s Koperkhairane area. It spreads across to over 135 acres. As their primary venture they will develop nearly 10 million sq. ft. space at DAKC owned by Anil Ambani’s Reliance Group.
Property prices of DAKC have received a double fold increase since 2002, the year in which it became operational. However both of the firms did not reveal any financial details of the deal. Some sources predict that the projects will fall in a range between Rs.6000 Cr to Rs.7500 Cr.
This will be the estimated cost for their both projects at Hyderabad and Navi Mumbai. Many real estate experts are of the opinion that India should invite more real estate investment from China. China is the second-largest economy which has enormous surplus to invest.
Ambani’s Reliance MediaWorks is expected to co-operate with the Chinese real estate firm. These two will collaborate in expanding their multiplex business to USA, besides having in India. Wanda Group is the biggest movie theatre owner. The Wanda Group owns US multiplex operator AMC Entertainment. The US multiplex operator AMC Entertainment was bought at a price of $2.6 billion. Somehow this monetizing of real estate land by the reliance is on the other hand is seen as its attempt to pay off its debt.
