Chinese firm SGW forays into Indian realty sector story for biz news:
Bengaluru, Dec 2 (IANS) Leading Chinese infrastructure major Sino Great Wall International Engineering Co Ltd (SGW) on Friday forayed into Indian real estate sector through a joint venture with city-based realty firm Fortuna Group.
“In the $50 million (Rs 340 crore) JV, we will invest $40 million and Fortuna $10 million in the equity ratio of 80 per cent and 20 per cent,” said SGW Chairman Chen Lue here.
The Beijing-headquartered, 15-year-old construction firm provides engineering services to hotel, residential, public building, mechanical and electrical, curtain wall, decoration and design projects in China and worldwide.
“We have obtained the Foreign Investment Promotion Board approval for setting up the SGW-Fortuna JV in Bengaluru with Neo Chia Wui as its Chief Executive and expand our presence in phases across the country,” Chen told reporters.
In view of the huge potential for the real estate development in India, he said the realty sector would spurt in tier-1 cities across the country.
“We feel this is the most opportune time to foray into India and the JV is keen to redraw the Indian real estate landscape through innovative technology, eco-friendly designs, green projects and contemporary projects,” he added.
The joint venture will target on-time delivery of projects by stipulating deadlines in the sales and purchase agreements.
“The real estate development in India has been constrained with inadequate financing options and high cost of funds, delaying projects and affecting their viability,” said Fortuna Group Director S.V. Rajesh Kumar.
Fortuna has till built over 1.5 million square feet of constructed area and has 1.2- million square feet under construction as on-going projects in Bengaluru.