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Kanakia, US-based Hines, Japanese firms partner for $1 bn project in Mumbai
Mumbai-based Kanakia Group has entered into a joint venture with Hines, a real estate investment manager in the US, and two Japanese companies for an office project with a gross development value (GDV) estimated to be around $1 billion, according to a source.
The consortium will develop a premium office project in Mumbai's Bandra Kurla Complex (BKC), India's costliest office hub, by investing Rs 3,000 crore, said the source. Mitsubishi Estate Co. (MEC) and Sumitomo Corporation are the Japanese partners in the venture.
The proposed project will offer 1.5 million square feet (msf) of premium office space with amenities like zones for retail and food and beverages. American architecture firm Kohn Pedersen Fox (KPF) will design the project.
'This site holds special significance for us, and we are confident that Hines will bring a world-class product that will set new standards in India. We will continue to explore similar partnerships in the future to drive sustainable value creation,' said Rasesh B Kanakia, chairman of Kanakia Group, in a statement.
Kanakia has more than 8.6 msf of projects with a GDV of Rs 12,825 crore.
The consortium's project is expected to benefit due to its strategic location and connectivity via BKC Connector Road, Santacruz-Chembur Link Road extension, upcoming Mumbai Metro lines, and the Mumbai-Ahmedabad Bullet Train terminus.
'This project marks a significant milestone in our journey in India. It reflects our commitment to deepening our presence in Mumbai and highlights our strategic partnerships with MEC and Sumitomo. Hines and Kanakia teams have worked on this project jointly for over a year already, and the project is progressing very well,' said Amit Diwan, senior managing director and India head at Hines.
'Given India's strong demographic tailwinds, along with the right fundamentals and market conditions, we've been seeing more investor interest in the country and continued demand for our office and residential projects,' said Diwan. 'This project is an excellent addition to our India portfolio, and we look forward to delivering the highest quality development that Hines is known for.'
Hines has assets worth $90.1 billion under management as of December 31, 2024, with a portfolio of 108 msf across 30 countries. Sumitomo entered the Indian real estate market in 2016 by participating in a high-grade apartment development project, Krisumi City, in Gurugram. Mitsubishi expanded its business to India in 2023 with a business park development in Chennai.
JLL is the transaction advisor for the consortium's deal.
BKC has offices of multinational and Indian companies. As of December 2024, the area's weighted average quoted rents ranged from Rs 250 to Rs 400 per sq ft per month. However, it has also seen deals with a monthly per sq ft rent of over Rs 800 (Tesla and BNP Paribas).
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