FCC

Runwal buys out GIC's 50% stake in Mumbai's R City Mall

2023-05-09

According to people with firsthand knowledge of the situation, real estate giant Runwal has acquired Singapore's sovereign wealth fund GIC's entire 50% ownership in their joint retail venture, the Ghatkopar neighbourhood of Mumbai's R City Mall, for over $10,000,000,000.

The deal is one of the biggest purchases of a single property in the Indian retail sector.

With returns of more than 4 times and a 1.2 million square foot retail asset valued at more than 20,000 million, the deal signals GIC's withdrawal from the market. Since the mall began operating in 2009, GIC has also benefited from additional returns from rental income.

One of the first Foreign Direct Investments (FDI) in the Indian real estate market occurred in 2006 when Runwal and GIC collaborated on the development of R City, the company's flagship mall. With GIC injecting money worth around 2500 million for the 50% ownership in the joint business, the collaboration began as a greenfield enterprise.