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Beijing headquartered Sino Great Wall International Engineering Company Limited today announced its foray into India through a joint venture with Bengaluru-based Fortuna Group to develop real estate projects across the country.
"Having consolidated our position in China and emerging as the leading stock of 'One Belt and One Road' initiative, SGW is aggressively looking at expanding globally. Upon building a formidable presence across Middle East, Southeast Asia and African countries, SGW is now eyeing India and South America," SGW Board Chairman Che Lue told reporters here.
The Shenzen listed international public company for general contracting engineering has a present market value of USD three billion.
SGW Fortuna, the joint venture entity, has obtained Foreign Investment Promotion Board approval. JV's equity split would be 80 per cent SGW and 20 per cent Fortuna, Che said.
SGW's initial investment would be USD 50 million in the JV and it would bring in similar investment within the next 18 to 24 months. To be headquartered in Bengaluru, SGW Fortuna would start its real estate operations from here and in a phased manner go pan-India, Che said.
To a query, he said he saw great potential for real estate development in India, not only in tier 1 cities, but also in tier-2 and tier-3 cities.
"We feel this is the most opportune time to foray into India and SGW Fortuna is keen to redraw the Indian real estate landscape through innovative technology, eco-friendly designs/green projects and contemporary project," Che said.
Che also announced appointment of Neo Chia Wui as the CEO of SGW Fortuna. Wui is a Singapore national with 30 years of experience in real estate development.
India is not new to Neo as in the past he had handled prestigious projects including Bengaluru, Che said.
Fortuna Group Director S V Rajesh Kumar said the primary mandate of the tieup "is on-time-delivery of projects' by stipulating project completion timeframe in S&P agreement.
Kumar said SGW Fortuna was all set to change the market dynamics of Indian real estate industry with its commitment to 'build to sell', unlike the current practice of 'sell to build.' "The first project will come up in North Bengaluru."
SGW was in merger and acquisition talks with several companies globally and though India is not on its radar at this point of time Che did not rule out acquisition in the coming years.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)