Japanese conglomerate Sumitomo Corp today announced USD 2 billion township project in Gurgaon as it forayed into Indian real estate sector in collaboration with local partner Krishna Group.
The 50:50 joint venture, Krisumi Corporation Pvt Ltd will build 5,000 flats, shopping mall, office space and educational institution at 65-acre land in Sector 36-A, Gurgaon abutting the Delhi-Mumbai industrial corridor's Global City.
The project, which will have a total built-up area of 18-18.5 million square feet, will be developed in phases, the two partners announced at a media round table today.
"I want to create a Japanese city here...The first phase will comprise 1.2 million square feet of built-up, consisting of 430-450 apartments and will be completed in 4-5 years," said Ashok Kapur, Chairman, Krisumi Corp.
Krishna Group, a diversified business house with interests in auto components, media, travel, and entertainment seating, owns the 65-acre land parcel where the mini-township will be built, said Kapur, who is also the head of the Group.
The 'Krisumi City', as the project is called, has been developed by the world-renowned Japanese design firm Nikken Sekkei, the name behind the famed Tokyo Sky Tree. It would offer quality high-rise residential options across various sizes and budget.
"Idea is to create a niche which Indian market had not seen," Kapur said adding the apartment that may cost Rs 1-2.5 crore will have quality and facilities equivalent to those costing Rs 15-20 crore at present.
Sumitomo Corp, which has done 300 real estate projects globally, will bring in the expertise and technology for Krisumi City.
"India's real estate sector is going through an interesting phase. While consumer's expectations have evolved manifold, most of the traditional developers are finding it difficult to effectively cater to all their requirements," said Masahiro Narikiyo, Chairman and MD, Sumitomo Corp India.
Narikiyo, who is co-CEO of Krisumi Corp, said the Tokyo-based group has done projects in Japan, the US, China, Singapore, Indonesia and Vietnam.
The company was attracted to India because it "is politically very stable among emerging markets," he said. "It is governed by democracy, the value we can share."
Sumitomo Corp has sold over 30,000 condominiums in Kansai and in the Tokyo metropolitan area over the past 40 years. In the office building business, it operates about 3,30,000 square metres of office space in Tokyo and Osaka.
Kapur said the biggest challenge facing the Indian real estate industry today is quality, efficiency, and commitment to timelines, all of which is exactly what Japan is known for.
"Japan is already beyond RERA," he said.
RERA is the Real Estate (Regulation and Development) Act passed by Parliament in 2016. RERA seeks to protect the interests of home buyers and also boost investments in the real estate sector.
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