New York based Vornado Realty Trust has set up a joint venture with Reliance Industries, the largest public company in India, to form a $500 million (€340 million) fund for Indian retail assets.
Under the terms of the arrangement, each company will commit up to $250 million toward the fund, which will be targeting retail shopping centers across the main cities of India. The fund will be targeting shopping centers at a size of between 500,000 and 1 million square feet. The intention is that once the properties are acquired, they will be owned and operated by Reliance, which currently operates 700 retail stores in India.
Vornado has become increasingly active in India. The firm has signed an MoU with the state of Maharashtra to develop a $200 million IT township there, and has also acquired a 50 percent stake in the 263 acre IT Park in Gurgaon being developed by Uppal Group.