MUMBAI: Tokyo-based diversified conglomerate Sumitomo Corporation is set to form a joint venture with an Indian company to build integrated township projects across the country, two persons familiar with the development said. “The Japanese company is at an advanced stage of finalising the structure of the venture and, as its first project, it may start a large-scale integrated township, including a condominium development,” one of them said. This will be the first time that a Japanese company will participate in Indian real estate space.
An email query to Sumitomo remained unanswered as of press time on Monday. Sumitomo would develop large-scale projects across the country and not confine itself to any particular region, the sources said.
Part of the 400-year-old Sumitomo Group, Sumitomo Corporation has sold over 30,000 condominiums in Kansai and in the Tokyo metropolitan area over the past 40 years. In the office building business, it operates about 330,000 square metres of office space in Tokyo and Osaka.
Sumitomo Corporation’s construction and real estate business is one of the largest investors, developers and managers of residential, retail and office properties and large-scale mixed-use urban redevelopment projects in Japan.
India currently allows 100% foreign direct investment (FDI) under the automatic route in the construction development segment, which includes townships, housing, built-up infrastructure and real estate broking services.
International real estate developers, especially Chinese developers such as Wanda Group, have been showing interest in Indian real estate. Most of these companies are interested in building large-scale projects across the country.