Mumbai, Dec 13 (IANS) Anil Ambani-led Reliance Group Thursday signed a memorandum of understanding (MoU) with Chinese real estate developer Wanda Group to form a joint venture that will explore opportunities in real estate and multiplex businesses.
"We are now looking forward to extend our strategic partnership to the highly succesful and dynamic Wanda Group, in a manner that will tremendously benefit both Groups and unlock substantial value for millions of all our stakeholders," Anil Dhirubhai Ambani, chairman, Reliance Group, said in a statement.
"Over the past few years, Reliance Group has become the single largest trading partner between India and China," Ambani said.
According to a company filing with the Bombay Stock Exchange (BSE), the first priority of the JV will be to develop integrated township projects in India, including commercial buildings, residential apartments, hotels and retail space.
On its part, Wanda Group said that it was looking forward to the partnership to avail upcoming opportunities in the Indian market.
"Wanda is very excited about opportunities in the Indian market. By joining our (Wanda Group and Reliance Group) strengths together, we hope our cooperation will bring mutual benefits and great results," Wang Jianlin, chairman, Wanda Group.
The company said it would collaborate initially in two projects -- Dhirubhai Ambani Knowledge City in Navi Mumbai and the new business district project in Hyderabad.
The Dhirubhai Ambani Knowledge City complex is owned by Reliance Communications and covers an area of 135 acres.
The land bank has a potential for development of over 100 million square feet, subject to necessary approvals, said the statement.
The new business district project in Hyderabad covers an area of 80 acres and is owned by Reliance Infrastructure. It has potential for commercial, residential and hotel porjects.
The company plans to develop up to 10 million square feet in a phased manner.
The statement added that another Reliance Group company, Reliance MediaWorks, will explore co-operation opportunities in multiplexes business in India and the US.
Wanda Group is a leading multiplexes player, with over 6,000 screens. The Group had earlier acquired AMC chain in the US investing around $2.6 billion (Rs.14,000 crore).