Mukesh Ambani-led Reliance Industries today announced a 50-50 partnership with US-based real estate investment trust Vornado to collectively invest $500 million in a shopping mall joint venture.
Under the JV, RIL and Vornado Realty Trust would commit up to $250 million each to acquire, develop and operate retail shopping centers across key cities in India.
"The shopping centers will contain 500,000 to 1,000,000 or more square feet and typically be anchored by a hypermarket to be owned and operated by Reliance, Vornado said.
RIL currently operates over 700 retail stores in multiple formats in India.
Vornado has an aggregate investment in other India joint ventures of approximately $91 million and capital commitments to these ventures of an additional $92 million.
RIL is India's largest public company with revenues in excess of $34 billion and a market capitalization of over $75 billion.
Vornado Realty Trust is a fully-integrated equity real estate investment trust. It is one of the largest owners and managers of real estate in the United States with a portfolio of over 100 million square feet in its major platforms, primarily located in New York and Washington, DC metro areas.
Vornado's other real estate investments include 32.8 per cent interest in Alexander's Inc, 32.7 per cent interest in Toys "R" Us and Hotel Pennsylvania in New York City.
Total real estate owned or managed, including pro-rata share of partially-owned entities and joint ventures, is over 100 million square feet, including Vornado's 16 million square feet of Toys "R" Us real estate.
