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Mint
08-06-2025
- Business
- Mint
Japanese developers bet big on Indian realty, lured by long-term growth promise
Bengaluru: Japanese investors and developers are placing large bets on India's real estate sector, prompted by a turnaround in the office, logistics and residential sectors, and convinced about the country's long-term economic growth prospects, analysts said. Post-pandemic, Japanese companies such as Sumitomo Realty & Development and Sumitomo Corp. (both Sumitomo Group firms), Mitsubishi Estate Co. Ltd, Mitsui Fudosan Co. Ltd, Mitsui O.S.K Lines Ltd and its subsidiary Daibiru Corp. and Marubeni Corp. among others have poured in millions into real estate projects and land parcels, primarily in Mumbai and National Capital Region (NCR). The deal momentum has gained further pace this year. Also read: Global firms Hines, Sumitomo partner for Mumbai condominium project In June, Goisu Realty, a group firm of developer Sumitomo Realty, which accounts for the highest share of India investments among Japanese firms, was allotted two land parcels in Mumbai's Bandra Kurla Complex, by Mumbai Metropolitan Region Development Authority (MMRDA), for a total of ₹3,138 crore. It paid 39-40% premium over the bid price for both the land patches. Similarly, Sumitomo Corp. partnered with other companies this year for two projects—an office project in suburban Mumbai's Kalina, near BKC, and a luxury condominium project in Powai. Mitsubishi Estate is also an equity investor in the office project. 'India is expected to continue experiencing a demographic dividend, along with maintaining economic growth in the 6% range. In addition to its domestic demand-led economic structure, the country is increasingly recognized as a global business hub, particularly in the IT, financial and service sectors," Sumitomo Corp. said in a June statement, announcing its entry into the Mumbai office market. 'Based on the shared recognition that India remains a resilient growth market even amid today's increasingly uncertain global economy, we have decided to participate in this project," the firm added. Also read: Prime Offices Fund makes ₹750 crore debut with Delhi office buy Japanese real estate investors and developers entered India much after the American, Canadian, West Asians and Singaporeans did. The Japanese, however, are patient, equity investors betting on land and early-stage projects, and not shying away from taking development risks, experts said. 'Japanese capital is demonstrating rare conviction by backing early-stage development deals across India's core real estate segments—office, logistics and residential. This is not opportunistic investing, but a strategic bet on the country's long-term growth trajectory," said Nishant Kabra, head—land & capital markets (North and West) India, JLL, a property advisory. 'In the last five years, we've seen over $1.5 billion flow into development equity—a clear signal that Japan Inc. sees India not just as a market, but as a multi-decade growth partner," Kabra added. Japanese investors entered India's realty sector via direct investments, or alliances with local partners or other international investors. Last year, Daiburu, with a century-old experience in constructing office buildings in Japan, said it has made its first India real estate investment, pumping in $123 million in 'Atrium Place', a premium office project in Gurugram, being developed by Hines India and DLF Ltd. 'India is a key pillar of the MOL Group's (Mitsui O.S.K Lines) strategy to diversify its business portfolio by increasing non-shipping, stable revenue businesses that counter-balance the volatile shipping market," Daibiru said. Meanwhile, Japanese shipping giant MOL Group has been actively expanding its presence in India. 'The Japanese came to the party late, but they are very long-term investors. Unlike other international investors and funds, they are not married to returns. Japanese real estate investors have no pressure to sell or exit investments, don't operate in a fund structure and rarely manage third-party money, which makes them different from the others," said Shobhit Agarwal, managing director and chief executive officer at Anarock Capital. As the real estate sector continues to perform on all fronts, Japanese investors are also eyeing multi-city investments, diversifying their portfolios and doing follow-on funding. Also read: India office Reits report higher FY25 income, leasing on strong GCC demand Last year, Mitsubishi Estate partnered with Alta Capital-backed logistics platform Logicap Management to develop industrial and warehousing assets in Chennai, Pune and NCR, betting on a sector that is highly fragmented but with growth potential. This year, the joint venture was extended with an additional investment to develop more assets. Earlier this year, Mitsubishi Estate also invested ₹560 crore in Birla Estates Pvt Ltd's residential project in Bengaluru, marking its maiden residential investment in India.
Mint
05-06-2025
- Business
- Mint
Global firms Hines, Sumitomo form joint venture for Mumbai luxury condo project
Bengaluru: US-based global developer and investment manager Hines and Japan's Sumitomo Corp. have entered into a joint venture for a luxury condominium project in the high-value Mumbai property market. In India, this project marks Hines' entry into the Mumbai residential market as a developer, Amit Diwan, senior managing director and head of India at Hines, said. The project, which will be developed in suburban Mumbai's Powai locality, is yet to be launched. Hines is the developer and equity investor in the project and manages day-to-day development activities in collaboration with Sumitomo, which is also an equity investor. Read more: DLF's Q1 launches to set the tone for FY26 pre-sales trajectory Hines expands Mumbai footprint Last week, Hines and Kanakia Group said they have struck an alliance to develop an office project on a 3-acre land parcel near the business district Bandra Kurla Complex (BKC) with a total investment of around ₹3,000 crore. Sumitomo and Japanese real estate firm Mitsubishi Estate Co. Ltd are also partners in the project. Hines is the lead developer and equity investor along with the two Japanese entities, while Kanakia is the land partner. 'The living sector is a high-conviction theme for Hines globally. In Powai, we will bring international-standard homes in a well-established yet supply-constrained micro-market. This development reflects our long-term commitment to Mumbai and our ambition to grow via investments and developments across India," Diwani told Mint. The Powai residential project is a 3.4-acre lake-facing gated community, with six 20-storey towers comprising 321 units. Hines didn't disclose the investment in the project. Besides the new Powai and Kalina projects, Hines also has an ongoing 1 million sq. ft office and retail development in suburban Mumbai's Borivali area. Powai is a premium residential location known for its commercial office supply. The most prominent development in the suburb is Hiranandani Group's flagship integrated township, Hiranandani Gardens. In 2017, the developer sold its offices and retail space in Powai to Brookfield Asset Management for around $1 billion in one of the largest commercial realty deals in the sector. Read more: Close to its Navi Mumbai airport, Adani is building a jumbo township "Powai has established itself as an institutional-grade micro market within the Mumbai Metropolitan Region. With a thriving tenant mix across IT, banking and financial services, and emerging tech, steady rental yields, and limited new supply, it offers long-term value visibility for both domestic and offshore investors," Nishant Kabra, head–Land & Capital Markets (North and West) India, JLL. 'Developers view Powai as a rare urban precinct that offers both scale and sustained demand. Its evolution into a mixed-use hub is driven by integrated planning, premium developments, and strong occupier traction," Kabra added. Since establishing its presence in India in 2006, Hines has expanded its portfolio to 13 live projects across the office and residential sectors, in addition to completed or exited projects. It now operates in Delhi-National Capital Region (NCR), Mumbai, Bengaluru, Pune and Ahmedabad.
Nikkei Asia
03-06-2025
- Business
- Nikkei Asia
Sumitomo's Madagascar nickel mine transforms into $3bn money pit
TOKYO -- A Madagascar nickel mining operation has generated over 430 billion yen ($3 billion) in net losses for Sumitomo Corp. since the Japanese trading house joined the project two decades ago. Sumitomo acquired a stake in the Ambatovy mine in 2005 that has grown to just over 54% with Korea Mine Rehabilitation and Mineral Resources (KOMIR) owning the rest.
Irish Examiner
22-05-2025
- Business
- Irish Examiner
SMBC proceeds from Russian jet insurance settlements hit €1.2bn
Irish aircraft lessor SMBC Aviation Capital has booked a further $654m (€577.2m) in proceeds from insurance settlements over the past year related to jets stranded in Russia following Western sanctions, the Irish-headquartered company said on Thursday. That brought SMBC's total recoveries from claims following the sanctions over Moscow's war in Ukraine to $1.41bn (€1.2bn). It was one of six lessors that ended an Irish lawsuit against their insurers last month following a series of settlements. SMBC recorded an impairment of $1.6bn (€1.4bn) in 2022 to cover the full financial impact of having 34 jets stuck in Russia after the sanctions forced the termination of all Russian leases. The world's third-largest aircraft lessor gave the update in its full year results to the end of March, which showed pretax profits rose 22% year-on-year to a company record $563 million, excluding the benefit of the insurance settlements. SMBC, owned by a consortium including Japan's Sumitomo Corp and Sumitomo Mitsui Financial Group, said its core lease rental revenue grew by 3% to $2 billion and its asset sales hit $1.9 billion following the sale of 48 older aircraft. Reuters
Reuters
22-05-2025
- Business
- Reuters
SMBC proceeds from Russian jet insurance settlements hit $1.4 billion
DUBLIN, May 22 (Reuters) - Aircraft lessor SMBC Aviation Capital has booked a further $654 million in proceeds from insurance settlements over the past year related to jets stranded in Russia following Western sanctions, the Irish-headquartered company said on Thursday. That brought SMBC's total recoveries from claims following the sanctions over Moscow's war in Ukraine to $1.41 billion. It was one of six lessors that ended an Irish lawsuit against their insurers last month following a series of settlements. SMBC recorded an impairment of $1.6 billion in 2022 to cover the full financial impact of having 34 jets stuck in Russia after the sanctions forced the termination of all Russian leases. The world's third-largest aircraft lessor gave the update in its full year results to the end of March, which showed pretax profits rose 22% year-on-year to a company record $563 million, excluding the benefit of the insurance settlements. SMBC, owned by a consortium including Japan's Sumitomo Corp (8053.T), opens new tab and Sumitomo Mitsui Financial Group (8316.T), opens new tab, said its core lease rental revenue grew by 3% to $2 billion and its asset sales hit $1.9 billion following the sale of 48 older aircraft.
