Singapore fund GIC in JV wih Runwal for Ghatkopar realty

Singapore fund GIC in JV wih Runwal for Ghatkopar realty
RAJESH UNNIKRISHNAN

TIMES NEWS NETWORK[ WEDNESDAY, JUNE 20, 2007 03:53:09 AM]

MUMBAI: Government of Singapore Investment Corporation (GIC), which manages more than $100 billion worth of funds, has formed a joint venture with Mumbai-based real estate firm Runwal group to develop a commercial property project in central Mumbai suburb Ghatkopar with a total investment of Rs 250 crore.

GIC Real Estate, the property arm of GIC, and the Runwal group have floated a 50:50 JV, which will develop a 8.5-lakh sq ft mall in Ghatkopar. The mall will be part of the Runwal group’s R-town development on the 20-acre plot that belonged to Wyeth Laboratories.

The GIC JV is Runwals’ second FDI project in Mumbai. Last year, the group had tied up with Singapore-based CapitaLand to develop a residential project.

When contacted by ET, Sandeep Runwal, director, Runwal group, declined to comment on the deal.GIC Real Estate, one of the world's top 10 real estate investment companies, had said that its has plans to invest “hundreds of millions of dollars” in shops and homes in India and Brazil.

The 24-year-old company, which owns Chicago’s AT&T Corporate Center, Tokyo’s Shiodome City Center, Seoul’s Star Tower and Sydney’s Chifley Tower and Plaza, is widening its reach to other emerging countries as the US residential property market slows down, and competition pushes up prices in markets such as Japan.

Last year, Asia’s leading property firms, CapitaLand group and Runwal group had formed a JV to develop residential projects with an investment of Rs 450 crore.The Runwal group has so far developed over 35 residential and commercial projects in Mumbai.