Japanese co to build houses in India in JV; to invest Rs 6k cr
Japan’s Tama Home and Singapore’s Developer Group, will jointly build three housing projects, including two townships, having about 3,500 housing units, in Ludhiana, Visakhapatnam and Chennai
Nov 06, 2014
Source : The Free Press Journal
md@gharabari.com

 

New Delhi: In the first Japanese entry into the Indian property market, Tama Home today announced construction of 12-18 projects at an investment of Rs 6,000 crore in partnership with another firm.

Tama Home, listed on the Tokyo Stock Exchange, has an annual sales of Rs 10,000 crore and builds 10,000 homes a year, while its partner Singapore-headquartered Developer Group, a 100 per cent FDI company, is engaged in the Indian real estate.

Developer Group is promoted by Japanese investors but managed by Indian professionals.

To start with, Japan’s Tama Home and Singapore’s Developer Group, will jointly build three housing projects, including two townships, having about 3,500 housing units, in Ludhiana, Visakhapatnam and Chennai.

“India has tremendous potential for growth in housing. We have found a reliable partner in Developer Group to enter into the Indian market…. We want to replicate Suzuki story in India,” Tama Home President and CEO Yasuhiro Tamaki told reporters here.

Tam Home will bring the eathquake-proof technology to the Indian realty market.

Asked whether the decision to enter India was taken after Indian Prime Minister Narendra Modi’s visit to Japan, he said: “It was planned a year ago but the process was expedited after the PM’s visit.”

He, however, declined to share the further investment plan in India.

Tama Home’s entry into India comes a week after Japanese telecom group SoftBank buying a major stake in Snapdeal.com for USD 627 million.

A number of Japanese companies are already present in India across sectors like automobiles and consumer goods, while financial services from there have also began evincing interest to set up shops here.

Commenting on the tie-up, Developer Group CEO David Rebello said: “Developer group and Tama Home will together develop about 12-18 projects in the next five years at a cost of about Rs 6,000 crore. Our focus will be on housing segment but we will do other projects as well.”

The project cost would be funded through equity and domestic debt, he added.

The joint venture will launch two township projects in the next four months at Ludhiana and Visakhapatnam. By middle of 2015, it will come up with another housing project in Chennai.

Tama Home will have a stake in the Developer Group, which in turn will have stake in Tama Home Indian arm.

Developer Group India Pvt Ltd is buying land as well as partnering land owners to build projects. It would outsource the construction activities to local contractors.

The joint venture firm would also look into possibilities of developing smart cities, commercial, hospitality projects.

Latest Realty News

Ponzi scam: CBI arrests 2 Odisha businessmen
Nov 06, 2014
Bhubaneswar: CBI arrested two businessmen associated with real estate for their alleged links with Artha Tatwa (AT) group
Record 815m sq ft of flats unsold in 6 cities
Nov 06, 2014
MUMBAI: The stagnant property market has led to the highest ever unsold stock of 815 million sq ft of residential space across six cities at the end of the September quarter this year
Sebi-DLF case: SAT allows realty major to redeem Rs 1,806 crore worth mutual funds
Nov 05, 2014
MUMBAI: In an interim relief against Sebi order, realty giant DLF was today allowed by the Securities Appellate Tribunal to redeem mutual funds worth Rs 1,806 crore till next month
High costs, low returns inhibit developers about malls
Nov 05, 2014
New Delhi: Developers across the country are shying from building malls due to high land costs, spurt in property prices and saturation of the market
Land acquisition law may be eased for PPP projects
Nov 05, 2014
New Delhi: The National Democratic Alliance government is planning to exempt public-private partnership (PPP) projects from the need to obtain consent of affected families and the mandatory social-impact assessment, through amendments to the land acquisition law
Robert Vadra's Sky Light Realty inventory zooms tenfold over three years
Nov 05, 2014
New Delhi: The real estate inventories of Robert Vadra firm Sky Light Realty zoomed nearly 10 times in three years
'Exercise caution on projects in villages'
Nov 05, 2014
PUNE: Real estate developers from the city said closer supervision of construction projects and making architects and structural consultants more accountable was necessary
Chennai Tops in Housing Price Gains: Report
Nov 05, 2014
Chennai: Though the housing market overall in the country has remained sluggish over the past year, it has shown sharp gains in Chennai according to National Housing Bank
BDA makes 1000-acre infra plan for fringes
Nov 04, 2014
BHUBANESWAR: The Bhubaneswar Development Authority (BDA) has announced it will prepare a master plan for a 1000-acre government plot in the city soon, fuelling speculation in the real estate market
Singapore-based engineering group focuses on Indian smart cities
Nov 04, 2014
SINGAPORE: A Singapore-based engineering consultancy is planning to set up Centres of Excellence in smart cities

Latest Realty News Of State

Realty Talk's