Chinese Realty firm to invest 10 million dollars in India
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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