An industrial park will soon be built in the northern part of India as Dalian Wanda Group Co. has agreed to invest up to $10 billion for the project, as part of its latest efforts to expand overseas, China Daily reported.
The report said that the memorandum of understanding was signed by the company in Beijing on Friday, Jan. 22, as it agreed to build the Wanda Industrial New City, an industrial zone in the northern Indian state of Haryana.
The report cited sources from the Haryana government as saying that the first phase of the project will cover 13 square kilometers, which will include an entertainment park and industrial park where companies engaged in automotive manufacturing, machinery, software, healthcare education and other industries will be built.
According to a statement issued by the company, Wanda will be mainly investing in building the initial infrastructure, while the real estate developer will attract other companies from home and abroad to get involved with the project.
The company added that the Wanda Cultural Tourism City and a residential district are also part of the blueprint.
Experts said that overseas expansion and brand export have driven Wanda to venture into India's property market, as many Chinese real estate developers are heading for developed countries in Europe and the American continent, where potential wealthy buyers from China are welcome.
"Wanda's advantage lies in its low-cost operation, mature development mode and rich operation management experience in investing in India," Xie Yifeng, the president of the Realty Association of Asia-Pacific Cities, said.
Xie, however, warned of possible market, political and policy risks in India where large-scale commercial development has always been a contentious issue and the land acquisition process takes several years to complete.
Part of Wanda's overseas expansion goals include building two large projects in Australia: one beachfront luxury hotel, and an apartment project on the Gold Coast and another one at the heart of Sydney's CBD.
According to the report, Wanda's expansion plan is part of its efforts to derive 30 percent of its revenue from outside China.