Warburg Pincus partners with Runwal Group to develop malls in India
Category: #retail  By Pankaj Singh  Date: 2019-05-21
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Warburg Pincus partners with Runwal Group to develop malls in India

Warburg Pincus LLC, an American private equity firm, has recently formed a joint venture with Mumbai-based builders, Runwal Group to build a shopping mall platform. The partners will reserve $200 million each, in equity and raise $600 million in debt to generate an amount of $1 billion to invest in and build shopping malls across (1,2,3 tier) cities in India. The cities targeted will need to have sizeable population along with growing disposable income, cites source.

For the record, Warburg Pincus LLC has invested Rs1,800 crore in the residential business of Piramal Realty and made an investment of $250 million in Embassy Industrial Parks Pvt. Ltd. The JV is Warburg Pincus’s first investment into retail sector development.

 In the Indian retail development sector, Warburg Pincus has made its first investment in joint venture with Runwal Group. The conglomerates will each hold a 50% stake in the platform. Reportedly, the platform aims at building large destination malls, small hypermarket and cinema anchored community malls. Sanjay Dube has been appointed Chief Executive Officer of the new venture.

Sandeep Runwal, MD, Runwal Groups, was reportedly quoted saying that the retail real estate sector is estimated to grow, driven by lack of community spaces in Indian cities along with growing income, resulting in greater expenditure on entertainment & branded retail. The plan to work with Warburg Pincus is to leverage their experience to create market leading platforms in the retail mall space in other parts of Asia, Runwal added.

Anish Saraf, MD, Warburg Pincus India, was reportedly quoted saying that with developing middle class and extension of branded retail, shopping malls brings forth opportunity to be a part in evolving consumption of India.

 As per credible sources, the platform will cover several projects that are under development and will have options to acquire some of Runwal Group’s running retail malls. The joint venture partners are planning to acquire greenfield and brownfield projects as well.

Source credit: https://www.livemint.com/companies/news/warburg-pincus-forms-jv-with-runwal-group-to-build-malls-in-india-1558331925329.html



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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