CapitaLand Limited has announced that it has through its indirect wholly-owned subsidiary, CapitaLand Retail India Investments Pte. Ltd., entered into two separate Joint Ventures with Advance India Projects Limited and the Prestige Group respectively to invest, develop and manage retail/predominantly retail projects in India.
AIPL is a renowned Delhi-based developer with a strong presence in North India. Prestige is a well-established Bangalore-based real estate player with an extensive footprint in South India. The two strategic partnerships provide CapitaLand with a unique opportunity to invest and manage an immediate portfolio of 15 retail/predominantly retail projects strategically located in 14 cities Pan-India. The eight projects, identified under the JV with AIPL, and seven projects, identified under the JV with Prestige, have a total asset value of over S$2.12 billion and a total leaseable area of over 11.0 million ft². CapitaLand Retail will also have Right of First Refusal to future retail/predominantly retail projects by Prestige and AIPL.
Mr Liew Mun Leong, President and CEO of CapitaLand Limited, said: "We are extremely pleased to partner Advance India Projects Limited and Prestige Group, two highly reputable Indian developers. The two partnerships, with an identified portfolio of 15 properties which are strategically located in 14 cities Pan-India, provide CapitaLand with a head start in the retail real estate business in both North and South India. In addition, the subsequent pipeline of projects from both partners will allow us to rapidly upscale our retail real estate business in India. Our joint venture partners' strong land sourcing capabilities, good development and construction background, as well as retail mall management experience complement our comprehensive retail real estate and financial management skill sets. This will further strengthen our position as the leading retail real estate player in Asia. We expect to deepen our retail and fund management presence in India to become a significant long term retail real estate player there overtime."
Mr Daljeet Singh, Executive Director of Advance India Projects Limited, said: "We are delighted to partner CapitaLand to jointly invest, develop and manage retail projects in North India, where we have an established presence and strong reputation as a developer. As one of the largest retail real estate players in Asia, CapitaLand brings to the partnership a proven integrated retail real estate business platform with a full suite of expertise ranging from asset planning, development, leasing, marketing to operations which would substantially complement the competence of AIPL. In addition, CapitaLand's strong real estate financial skill sets will add significant value to the joint venture, particularly when we share a common exit strategy for the retail projects through either a listed vehicle or REIT. We look forward to working closely together with CapitaLand towards the successful opening of Udaipur Mall located in Rajasthan, one of India's top tourist destinations, in First Quarter 20091. This joint venture is not just the tie up of two successful real estate developers but also a promise of a brand which would advance India by optimizing the values of commitment, dedication and integrity which are inherent to both the organisations."
Mr. Irfan Razack, Chairman and Managing Director of Prestige Group, said: "The joint venture with CapitaLand is a key milestone for Prestige, one that will further strengthen our stronghold as one of the most established real estate developers in South India. India presents abundant opportunities in the retail real estate market with its rapid urbanisation and growing affluence, but enjoys only 3% organised retail formats. Prestige Group has successfully completed and managed a retail mall development called "The Forum" in Bangalore since 2003. "The Forum" has been widely acclaimed as one of the most successful and well managed retail malls in India. Leveraging on the success of "The Forum", Prestige G