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| A worker at Wanda Plaza in Harbin, capital of Heilongjiang province. Dalian Wanda Group has stepped up its overseas expansion as the domestic property market yields lower returns. [Yan Daming / for China Daily] |
The Chinese conglomerate Dalian Wanda Group, a well-known commercial property developer, has decided to cooperate with Reliance Group, a large conglomerate led by the Indian billionaire Anil Ambani, to develop real estate projects in India.
The two companies signed a Memorandum of Understanding on Thursday to establish a joint venture to develop integrated township projects, including commercial and residential apartments, hotels and retail space, reported the Times of India on the same day, citing Reliance's press statement.
The two companies will examine a land development project in Navi Mumbai, a satellite city of India's financial capital, and a 32-hectare site in Hyderabad, a fast-growing western city, the UK-based Financial Times reported on Friday.
Although the two firms didn't reveal the amount of the investment, a source with knowledge of the two Indian projects estimated, it could be between $1 billion and $1.5 billion.
Zhao Zhenyi, an analyst with Industrial Securities, said a relatively large number of property developers are seeking investment opportunities overseas but are having trouble finding good ones.
"It's good that Wanda can find a partner to explore the Indian market with," Zhao said.
Analysts said it's extremely important for a company to have a good partner when it is considering making investments in unfamiliar markets, which tend to contain many risks.
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