CNTC Golden Properties Gate JV to foray into Indian real estate space
CNTC, a Chinese construction firm with joint venture with Bengaluru based real estate developer Golden Gate Properties is marking its foray into the Indian real estate space. This is the largest joint venture by any Chinese firm in the country so far in the Indian property market, , according to an official statement.
In two years, CNTC plans to invest as much as $1 billion in the joint venture that is named as Golden Gate CNTC. The entity proposes to develop two high-end residential projects in Bengaluru namely ‘The Presidential Tower’ with an investment outlay of Rs.1500 cr and ‘The Grand Tower’ with an investment outlay of Rs.1000 cr.
The JV firm Golden Gate CNTC will together develop mid income homes ranging between Rs 45 lakh and Rs 75 lakh. They will also construct large affordable housing projects and luxury homes under the jv firm.
Shi Hui, vice-chairman of CNTC said that they see promising opportunities in India and in particular Bengaluru. Through this JV, they want to capitalize on this opportunity and Bengaluru being a world class city there will be a lot of growth in the years to come.
Currently, they 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 their 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 has presence over 35 countries and 120 cities across the globe.
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 top investment destinations have prompted Chinese developers to bet on the country.
One of China’s most prominent developers, Dalian Wanda Group, signed a memorandum of understanding (MoU) earlier this year with the northern state of Haryana to develop ‘Wanda Industrial New City’. The investment of USD 10 billion, phased out over the next decade, is a very significant outlay by any Chinese company in India. Wanda plans to invest $10 billion in the next 10 years to construct industrial townships, retail and residential developments.
Shanghai Stock Exchange-listed China Fortune Land Development Co. Ltd is also scouting for a local developer to form a joint-venture.
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.