Joint Venture to develop mega real estate projects across India
New Delhi, 22nd February 2018: Japanese corporate behemoth Sumitomo Corporation, a Fortune 500 conglomerate, today announced its entry into the Indian real estate sector through a joint venture with Krishna Group, a diversified Indian group with interests in Auto Components, Media, Travel and Entertainment Seating.
The joint venture, Krisumi Corporation Pvt Ltd, will develop large scale real estate projects across India beginning with ‘Krisumi City’, an 18-million sq ft development which will be developed with a cost in excess of US$2 billion. Both partners will hold 50:50 stake in this JV company.
Announcing the foray, Mr Masahiro Narikiyo – Sumitomo Corporation, said: “India’s real estate sector is going through an interesting phase. While consumer’s expectations have evolved manifold, most of the traditional developers are finding it extremely difficult to effectively cater to all their requirements. In this backdrop, we believe that there is a huge vacuum for quality housing backed by a name that the buyers can trust. Which is why, we are extremely excited about this new venture with our partner, Krishna Group, which we believe embodies all the qualities that are required to succeed in today’s environment.”
Located in Sector 36 A, Gurugram, abutting the Delhi – Mumbai Industrial Corridor’s Global City and right at the confluence of southern peripheral road, NH-8, Central peripheral road and the Dwarka expressway, Krisumi City will be designed with the highest standards of Japanese quality and aesthetics.
The master plan and architectural design of Krisumi City has been developed by world renowned Japanese design firm NIKKEN SEKKEI, the name behind the famed Tokyo Sky Tree. The project has been designed based on the lifestyle aspirations of the potential buyers and would offer quality high-rise residential options across various sizes and budget segments, along with synergetic support from a high-end retail mall, a super premium hotel (5 star+ rating), education institutions, and premium office spaces.
Elaborating on the development, Mr Ashok Kapur, Chairman – Krishna Group, said: “The biggest challenge facing the Indian real estate industry today is with regard to Quality, Efficiency and commitment to Timelines, all of which is exactly what Japan is known for – Japan is already beyond RERA. We are certain that our partner, Sumitomo Corporation, part of the 400 year old Sumitomo Group, with their extensive Global experience in real estate development shall contribute tremendously in creating projects with endearing value for our clients as well as the local communities around it.”
This partnership is another successful milestone in the Indo-Japanese collaboration story, which has gained impetus with the confidence and support shown by the political leadership in both the countries.
Further, it is a testament of the Indian economic growth potential backed by the fundamental strength of the growing middle-class income population which makes this sector very attractive for Foreign Investment. The basic premise is that there will always be good demand for quality spaces produced by credible developers.
About Krishna Group
Krishna Group is one of the largest component manufacturers of India with Krishna Maruti Limited as its flagship company. It has diversified interests in automotive components, travel, media, entertainment seating and real estate. Over the last 25 years, Krishna group has forged over 21 international Joint ventures and alliances.
Driven by a philosophy of collaboration with several successful Joint Ventures with Global Leaders in each of their fields, Krishna Group today services marquee clients across the world, and is recognized for its customer orientation, quality products and strict adherence to commitments.
About Sumitomo Corporation
Sumitomo Corporation (“SC”) is a member company of the Sumitomo Group which has 400-year-old history and is a leading Fortune 500 global trading and business investment company with 107 locations in 65 countries/regions and 22 locations in Japan. The entire SC Group consists of more than 800 companies and more than 70,000 personnel and its annual revenue of FY2016 is approximately USD 40 Bn. SC conducts commodity transactions in all industries utilizing worldwide networks, provides related customers with various financing, serves as an organizer and a coordinator for various projects, and invests in companies to promote greater growth potential. SC has successfully delivered over 300 world class real estate projects across Japan, USA, China and Indonesia and SC’s core business areas also include Metal Products, Transportation and Construction Systems, Environment and Infrastructure, Media, Network, Lifestyle Related Goods and Services, Mineral Resources, Energy, and Chemical and Electronics.