According to a source, Mumbai-based Kanakia Group has partnered with two Japanese businesses and Hines, a US real estate investment firm, on an office project with a gross development value (GDV) of about $1 billion.
According to the source, the group will invest Rs 3,000 crore to build a high-end office complex in Mumbai’s Bandra Kurla Complex (BKC), which is India’s most expensive office district. The Japanese partners in the business are Sumitomo Corporation and Mitsubishi Estate Co. (MEC).
In addition to 1.5 million square feet (msf) of first-rate office space, the proposed project will include retail and food & beverage zones. The project will be designed by Kohn Pedersen Fox (KPF), an American architecture firm.
“This location is particularly meaningful to us, and we have no doubt that Hines will provide a top-notch product that will raise the bar in India. In order to promote sustainable value creation, we will keep looking for similar collaborations in the future,” said Rasesh B. Kanakia, chairman of the Kanakia Group, in a statement.
With a GDV of Rs 12,825 crore, Kanakia has more than 8.6 million square feet of projects.
Because of its advantageous location and connectivity through the Santacruz-Chembur Link Road extension, the BKC Connector Road, the Mumbai-Ahmedabad Bullet Train station, and future Mumbai Metro lines, the consortium’s project is anticipated to succeed.
This project represents an important turning point in our Indian journey. It showcases our strategic alliances with MEC and Sumitomo and demonstrates our dedication to expanding our footprint in Mumbai. For more than a year, the Hines and Kanakia teams have been working together on this project, and it is going really well, according to Amit Diwan, senior managing director and head of Hines’ India division.
Diwan stated, “We’ve been seeing more investor interest in the country and continued demand for our office and residential projects given India’s strong demographic tailwinds, along with the right fundamentals and market conditions.” “We are excited to deliver the highest quality development for which Hines is renowned, and this project is a great addition to our portfolio in India.”
As of December 31, 2024, Hines managed 108 million square feet of assets in 30 countries, totaling $90.1 billion. By taking part in the upscale residential construction project Krisumi City in Gurugram, Sumitomo made its debut in the Indian real estate industry in 2016. In 2023, Mitsubishi opened a business park in Chennai as part of its expansion into India.
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JLL is serving as the consortium’s transaction advisor.
