Realty firm Krisumi Corporation, a joint venture between Japanese firm Sumitomo and India''s Krishna Group, will develop a 65-acre project in Gurugram over the next 10 years, and it is investing around Rs 650 crore on construction of over 400 flats in the first phase, according to senior company officials.
Business conglomerate Sumitomo Corporation, a member company of the Sumitomo Group, has delivered over 300 projects across Japan, USA, China and Indonesia, and now entered the Indian real estate market. Krishna group is one of the leading auto component manufacturers.
Both partners have 50:50 stake in the joint venture, which was formed in 2018 with an aim to develop large-scale real estate projects across India.
The JV company is developing its first project, spread over 65-acre land parcels, in Gurugram on Dwarka Expressway. The first phase -- ''Krisumi Waterfall Residences'' -- covering over 5 acre land and comprising of 433 luxury apartments has been launched.
"A combination of conducive business climate made an attractive proposition for us to choose India as our market for expansion. We are excited to make strategic inroads into India with a vision to disrupt the landscape through bespoke offerings and superior customer experience," Krisumi Corporation Co-CEO and Director Takahiro Yamazaki said in an interview.
Nikken Sekkei, Japan''s largest design firm, has done the master-planning of this project and Tata Projects has been roped in as construction partners, he added.
"...the project leverages the collaborative approach to bring Japanese expertise and technology to India and re-imagine the definition of luxury housing," Yamazaki said.
Krishna group Chairman Ashok Kapur said the construction of the project is going at a rapid pace and the company is confident of delivering it as per the timeline.
"The project will exemplify a fine blend of Japanese craftsmanship and indigenous design to promise curated experiences to our patrons," Kapoor said.
Asked about the investment, Krisumi Corporation CEO Akash Khurana said the construction cost of first phase is estimated to be Rs 650 crore.
He said the sales have been good in the first phase with strong demand from both end-users and investors. The apartments are being sold in the price range of Rs 1.5-3 crore.
The demand will further increase in coming years as the construction work of Dwarka Expressway gets completed, Khurana said.
Stating that there is a trust deficit in the Delhi-NCR property market, he said the joint venture firm is focusing on quality and timely completion of the first phase, which is scheduled in 2024. "Our focus is to develop best product".
The entire project will be developed over the next 10 years, Khurana said adding that the planning for the next phase has started.
Recently, Krisumi Corporation appointed Vineet Nanda director for sales and marketing. He has worked in various real estate companies in Delhi-NCR, including Central Park, Omaxe, M3M India and CHD Developers.
According to property consultants, housing sales, which were badly impacted during April-June last year because of the nationwide lockdown to control the COVID-19 pandemic, have started to improve from July last year with unlocking of the economy.
Sales during the October-December 2020 quarter were better on pent-up and festive demand, and the momentum is continuing in the first quarter of 2021 calendar year as well, especially for those developers who have better track record of executing projects on time.
As per the report by housing brokerage firm PropTiger, housing sales fell 47 per cent in 2020 to 1,82,639 units from 3,47,586 units in the previous year across eight major cities -- Mumbai Metropolitan Region (MMR), Delhi-NCR, Bengaluru, Pune, Chennai, Hyderabad, Kolkata and Ahmedabad.