Japanese conglomerate Marubeni Corporation has agreed to invest in a residential project of Mumbai-based developer Wadhwa Group, marking its maiden deal in India’s real estate sector.
Tokkyo-based Marubeni said in a statement it is investing in the Atmosphere housing project via non-convertible debentures. It didn’t disclose the amount.
The announcement comes weeks after VCCircle reported that a Japanese firm was in advanced stages of discussion to invest around Rs 200 crore in a housing project of Wadhwa Group.
The deal marks Marubeni’s first investment in India’s property market and adds to its investments in Japan, China and Southeast Asia.
Explaining the rationale for the investment, Marubeni said demand for housing in Mumbai is likely to grow as urbanization advances rapidly. The company also said that it plans to expand its presence into a number of related development businesses, including social infrastructure maintenance and the new sales channels and services these businesses produce.
The Atmosphere project is located in Mumbai’s Mulund area. It has a saleable area of about 92,000 sq metres across 47 floors, three towers and 700 units. The project is scheduled to be completed during March-June 2024.
Marubeni joins a number of Japanese companies that have been showing interest in the Indian real estate market. These include Mitsui Fudosan, Mitsubishi Corporation, Sumitomo Corporation and Genkai Capital.
In January, Mitsui Fudosan formed an equal joint venture of $1 billion with Bengaluru real estate firm RMZ Corp., marking its maiden Indian investment.
In 2019, Sumitomo sealed a large land deal in the country. The firm bought a three-acre parcel in Bandra Kurla Complex of Mumbai from Metropolitan Regional Development Authority for Rs 2,238 crore.
In 2018, Mitsubishi invested around Rs 180 crore in a large residential property being developed by Shriram Properties in Chennai.
