Chinese Realty firm to invest 10 million dollars in India

Posted by Yeshwanth Karthik
1
Jun 29, 2015
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Dalian Wanda is the world’s 9th richest industrial empire according to Forbes. With the total assets in excess of 40 billion US dollars, the Dalian Group is indeed the largest among the Chinese realty giants. Last year, the group had a turnover of 38.8 billion dollars which carved a niche for themselves among the bigger names in property around the world.

They deal in mostly commercial properties that extent to retail stores and commercial spaces along with properties, tours and ecommerce. The recent visit of our Prime Minister Narendra Modi to China might have been the initiation of Wang Jianlin’s meeting with the PM in New Delhi last week. The PM’s visit to China saw dealings worth $22 billion being signed and this investment by a Chinese company in India is a fruit of those efforts.

The founder and billionaire chairman, Wang Jainlin had also met earlier with the Department of Industrial Policy & Promotion and with the Ministry of External Affairs. It is reported that he was keen all ears towards the incentive on offer by the state government. Land Acquisition can be tricky for foreign investors in India but the Dalian group seems to have sorted it all out.

It is not clear on the exact number or type of projects that could be underway soon. But, given their track record and the consumer interests in India, shopping malls, amusement parks and IT Tech Park could be the way to go. In total, the Chinese group plans to invest close to 10 million dollars in the next decade or so in India! There is a rumor that 5 industrial tech parks that will be mixed-use commercial properties will be the primary goal of the organization in India.

India has actually set a number of rules for direct investment in Indian Real Estate by foreign developers. Overseas exchange in realty has a three year period of lock in which will freeze the investment. There are also other catches which make construction a not so smooth process for investors. However, the Dalian group had come up with strategies to make this move a mutually beneficial partnership. Commercial projects in Haryana, Andhra and Gujarat will most definitely take shape though Delhi seems to be a bit of a gamble!

It is reported that during the meeting with our Prime Minister, the Chinese contingent of businessmen were keen on learning more and more about the legalities and financial options available for their prospective buyers. They also assured that they would work towards bridging the gap between the two nations; given the state of tension that has existed in the last few years.

Back in December 2012, the same group of Chinese Realtors had entered in a deal with the Ambani owned Reliance group of companies. They had a plan to build the Dhirubhai Ambani Knowledge Center which was later completed across a sprawling 56 hectares in Mumbai. There are also plans of building more than 10 multiplexes in the next 5 years or so in urban India!


Yeshwanth is an interior designer by profession and a contributing writer with IndiaProperty.com. She specializes in creating small aesthetic changes in space of any kind

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