A report from Simon Property Group has inked a deal to build malls in India. The company--through subsidiary Simon Global Ltd.--will work in a 50:50 joint venture with Wadia Group to build ten malls in 10 years.
Simon would be the first U.S.-based REIT to enter India.
A Wadia Group spokesperson declined to comment on the development, saying, “The company policy is not to comment on rumour or speculation. As you will appreciate, our business plans and discussions are confidential.” SPG officials were contacted and an email was sent to the firm, but it did not respond to queries.
Although the exact contours of the JV could not be known, industry experts say 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.