The Wadia Group is entering into a 50:50 joint venture (JV) with Simon Global Ltd, a subsidiary of the US-based real estate company Simon Property Group Inc. (SPG), to develop luxury shopping centres in India.
The Wadia Group is looking at developing 8-10 luxury malls across India in the next 10 years. These shopping centres would house international luxury brands, restaurants and entertainment zones among others.
SPG has a market capitalization of $56 billion (Rs2.3 trillion) and owns or has an interest in 323 properties in the US with an aggregate leasable space of 244 million sq. ft.
According to the industry people the Wadia Group may offer the land bank required for the high-end malls as well as be the local liaison for licences and government approvals. Simon Global is likely to bring in expertise in planning, development and managing these malls. It could also bring in premium and luxury retailers into the country since it has been dealing with such retailers in its premium malls in the US.
SPG owns or holds an interest in 286 properties in the US, including 171 regional malls.