Chinese construction firm CNTC is entering the Indian real estate space through a joint venture with Bengaluru-based real estate developer Golden Gate Properties.
In two years, CNTC plans to invest as much as $1 billion in the JV that is named as Golden Gate CNTC, it said in a statement. The entity proposes to develop two high-end residential projects in Bengaluru with an investment of Rs 2,500 crore.
“We see promising opportunities in India and in particular Bengaluru. Through this JV, we want to capitalise on this opportunity and Bengaluru being a world class city there will be a lot of growth in the years to come,” said Shi Hui, vice-chairman of CNTC.
“Currently, we are experiencing tough times, with slow sales and collections, project delays, the impact of demonetisation and (the challenge of) gearing up for RERA and GST. With our partner, tackling these challenges will be easy as it is familiar with more stringent practices,” said Sanjay Raj, co-promoter of Golden Gate Properties.
CNTC, which is part of Jiangsu Nantong San Jian establishment, is a construction conglomerate based out of Beijing.
Golden Gate Properties has properties in Bengaluru and Hyderabad. It claims to have developed five million square feet of residential and commercial space in the country.
The development comes at a time when a lot of Chinese developers have shown interest to invest, forge ties and develop real estate projects in the country. The sluggishness in the Chinese economy and India’s potential as a top investment destination have prompted Chinese developers to bet on the country.
The Stock Exchange of Hong Kong-listed Country Garden Holdings Co. Ltd, one of China’s largest property developers, is in an advanced stage of discussions with Bengaluru-based Unishire Group and Jain Heights to buy land parcels.
Chinese billionaire Wang Jianlin’s Dalian Wanda Group Co. Ltd has joined hands with the Haryana government to develop an industrial park with an investment of $10 billion.
Shanghai Stock Exchange-listed China Fortune Land Development Co. Ltd is also scouting for a local developer to form a joint-venture.
Like this report? Sign up for our daily newsletter to get our top reports.