New Delhi, May 30 -- US-based real estate asset manager Hines, an active investor in India's commercial and luxury residential real estate sector, has formed a joint venture with Japanese conglomerates Mitsubishi Estate Co Ltd and Sumitomo Corporation, along with local premium developer Kanakia Group, to develop a premium office project in Mumbai, the latter said Friday.

The financial details of the investment were not disclosed. However, the gross development value of the project is estimated at around Rs 12,825 crore ($1.49 billion), according to a statement.

Kanakia Group will serve as the land partner for the project, which will be developed in Mumbai's Bandra Kurla Complex (BKC). Hines, Mitsubishi Estate, and Sumitomo will act as institutional investors and development partners.

The project will encompass about 1.5 million square feet of premium office space, including food and beverage and retail zones. The design is being led by US-based architecture firm Kohn Pedersen Fox, which has also developed other key properties in India such as First India Finance Center and Three Sixty West in Mumbai.

"Hines and Kanakia teams have worked on this project jointly for over a year already, and the project is progressing very well," said Amit Diwan, senior managing director and head of India at Hines.

In October, VCCircle reported that the US-based real estate investor had refined its investment strategy in addition to planning an India-focused private equity fund to channel capital into the country's property market. Diwan said Hines was focusing on deal-by-deal investments in the country instead of accelerating the private equity fund route.

In June 2024, Hines also partnered with Daibiru Corporation, a subsidiary of Japanese conglomerate Mitsui OSK Lines, investing around Rs 1,000 crore ($123 million then) in an under-development office project with major Indian developer DLF Ltd.

Meanwhile, Mumbai-based Kanakia Group has delivered over 15 million square feet of real estate projects across sectors. Its portfolio includes 45 residential projects, 13 commercial developments, four malls, three hotels, six schools, and over 200 cinema screens.

Published by HT Digital Content Services with permission from VC Circle.