Kanakia Group Joins Forces with Global Titans for 1.5 Million Sq Ft Office Project in Mumbai’s BKC

Mumbai-based real estate developer, Kanakia Group, has joined forces with Hines, a global real estate investment manager, and two Japanese conglomerates, Mitsubishi Estate Co Ltd and Sumitomo Corporation, to develop a significant commercial project near India’s costliest business district, the Bandra Kurla Complex (BKC).

According to the statement, the commercial office space project is spread across a prime 3-acre land parcel. The proposed development will offer 1.5 million sq ft of office space. The project is being designed by the renowned American architecture firm Kohn Pedersen Fox (KPF).

The partnership brings together Kanakia Group as the land partner and Hines, MEC, and Sumitomo as institutional investors and development partners. They are leveraging their global expertise in real estate and infrastructure to create a commercial hub in one of Mumbai’s most strategically connected locations.

Kanakia Group’s broader strategy is to shift towards an asset-light model and significantly reduce its debt to below ₹1,000 crore. Currently, Kanakia Group has over 8.6 million sq ft of upcoming projects with a Gross Development Value (GDV) of ₹12,825 crore, as stated in the company’s press release.

“We are delighted to partner with Hines, MEC, and Sumitomo on this prestigious trophy office project in the heart of Mumbai. This site holds special significance for us, and we are confident that Hines will bring a world-class product that will set new standards in India. We will continue to explore similar partnerships in the future to drive sustainable value creation,” said Rasesh B. Kanakia, chairman of Kanakia Group.

“This project marks a significant milestone in our journey in India,” said Amit Diwan, senior managing director and head of India at Hines. “It reflects our commitment to deepening our presence in Mumbai and highlights our strategic partnerships with MEC and Sumitomo. This project with Kanakia Group in Mumbai brings significant local knowledge and expertise that we greatly value. Hines and Kanakia teams have worked on this project jointly for over a year already, and the project is progressing very well.”

Given India’s strong demographic tailwinds, along with the right fundamentals and market conditions, there has been increasing investor interest in the country, particularly in the office and residential sectors. The collaboration between these global and local players is expected to set new benchmarks in the real estate sector, particularly in the bustling city of Mumbai.

The Bandra Kurla Complex, known for its strategic location and connectivity, is poised to benefit from this development, enhancing its status as a premier business district in India. The project is anticipated to attract major corporate tenants and contribute to the economic growth of the region.