Golden Gate inks $300mn deal with Chinese infra co

BENGALURU: Golden Gate Properties and Chinese construction behemoth

CNTC

have signed a $300million joint venture to build residential projects in Bengaluru, marking the entry of a Chinese company into the city's realty sector.

The venture, Golden Gate CNTC, will begin with two residential projects in

Yeshwantpur

, namely The Presidential Tower with an investment of about Rs 1,500 crore and The Grand Tower with Rs 1,000 crore. Two more projects will be added in

Whitefield

and Sarjapur as CNTC pumps in about $1 billion over the next two years into the country's property market. “At present, we are experiencing the toughest times of our careers, with slow sales and collections, project delays, impact of demonetization, and also gearing up for RERA and GST. With our new partners, this will become easy as they are used to more stringent practices and the integration will be easier,“ Sanjay Raj, co-promoter of Golden Gate, said.

Chinese real estate companies such as

China Fortune Land Development

(CFLD) and Country Garden have been scouting the Indian market for some time now and have been building teams to enter the country through partners hips with local developers.

While CNTC will bring in technology and build the residential projects, Golden Gate will facilitate land acquisitions and timely approvals. The firm claims to have about 350-400 acre land parcel in Bengaluru.

CNTC is part of the $15billion Jiangsu Nantong San Jian establishment. It is present in over 120 cities in 35 countries and is known for constructing the Shanghai Tower, the third tallest in the world with a height of 632 metres.

“We are very excited to enter India through our partner. We have been studying the India market for the past two years before taking this plunge,“ said Shi Hui, CNTC's vice chairman.