Japanese conglomerate Nishi-Nippon Railroad Co Ltd (Nishitetsu) is going to collaborate with a local developer in India, Runwal Enterprises, Mumbai, to make a strategic move in the Indian real estate market. With the help of the partnership, an ambitious commercial project worth ₹2,000 crore in Kurla, that is close to Mumbai’s Bandra-Kurla Complex (BKC), one of the city’s prime business districts, will be jointly developed.
The project will be built on a piece of land more than 3,000 sq meters in size and will have more than 310,000 sq ft of leasable Grade-A commercial office space. Route78 Partners, an investment management firm, has also come on board the project by providing long-term equity capital.
“This marks our first participation in an overseas rental office development project,” Nishitetsu said in a statement. “As a key strategy of our 16th Medium-Term Management Plan, we are promoting the expansion of profits from our overseas real estate business. Going forward, we will continue to strive to further expand our overseas real estate business and accumulate know-how, contributing to the development of sustainable cities overseas”, the company further stated.
Additionally, Genkai Capital Secured Investment Pte Ltd (GCSI), part of Singapore-based Genkai Capital Group, is expected to invest alongside Nishitetsu, Runwal Enterprises, and Route78 Partners.
“At Route78 Partners, our objective is to back the real estate companies in India with long term equity capital,” said Avinash Sule, Founding Partner, Route78 Partners. “This partnership with Runwal Enterprises and NNR, Japan aligns with our objective of channelling institutional capital into real estate developments in India.”
Runwal Enterprises's collaboration with the foreign company serves as a huge flagship with their goal to attract institutional investments to widen their strong position in the Mumbai <br>premium commercial real estate sector. The company has, in the course of the years, spread its<br> wings from affordable and middle-income housing to high-end and luxury housing developments.
Nishitetsu, which was established in 1908 and is located in Fukuoka, Japan, is a major<br>conglomerate that has the businesses in different sectors such as transportation, logistics,<br>retail, leisure, and real estate. The company, with a history of more than 100 years in Japan,<br>is currently going worldwide with the main strategy of sustained growth and high-quality<br>urban development all over Asia.
According to market experts, worldwide investors are increasingly attracted to the Indian real estate market due to continuous demand, more transparent regulations, and large-scale urban infrastructure projects. They are channeling institutional capital primarily into commercial offices, industrial parks, data centres, and residential developments, as they are long-term investors seeking stable returns and large-scale growth opportunities.
Furthermore, analysts point out that this positive development is likely to be sustained over a longer period, making India a very attractive destination for global capital across various asset classes. The collaborative undertaking between Nishitetsu and Runwal is an illustration of this trend, where Shanghai-based Fuji Realty Global Partners is investing in the Mumbai office project, combining foreign expertise with local knowledge to provide high-standard commercial infrastructure.
The Real estate project at Kurla is a major step forward for foreign investors who have expanded their interest in India and is a reflection of the city's changing commercial environment, where the role of institutional-grade developments is becoming more and more dominant. The alliance with Nishitetsu's international experience and Runwal's insight into the local market aims to transform Mumbai's office spaces into world-class ones by setting new standards in terms of quality and sustainability.
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