Runwal acquires GIC's 50% ownership in Mumbai's R City Mall

The Runwal Group recently acquired Singapore's sovereign wealth fund GIC's entire 50% ownership in their joint retail development R City Mall for almost Rs 1,000 crore in order to fully manage the asset in Mumbai's Ghatkopar area. The deal is one of the biggest purchases of a single property in the Indian retail sector.

The deal states GIC's withdrawal from the market with returns of more than 4 times and a 1.2 million square foot retail asset valued at more than Rs 2,000 crore. GIC has also benefited from additional returns from rental income since the mall began operating in 2009.

Runwal partnered with GIC for its flagship mall R City in 2006 which was one of the first Foreign Direct Investment FDI in the Indian real estate market. The partnership began as a greenfield project with GIC investing more than Rs 250 crore for a 50% ownership in the joint business.

Retail buildings have seen consistent investment development driven by strong increases in demand for the past few years following the pandemic. Institutional investments in high-quality retail assets increased by six times in 2022 compared to 2021 and inflows are projected to reach $1 billion in 2023. Vacancy rates for graded properties are currently at 3 year low while leasing activity is at 3 year high and consumption and footfalls are above pre-pandemic levels according to the information from JLL India.

R City is one of Mumbai's largest shopping and entertainment destination which features more than 300 Indian and foreign businesses in the fashion, food, beverage, and entertainment industries. It has been in operation for over 13 years and recently underwent renovations to provide a premium shopping experience in line with worldwide standards.

Tata Power and the mall have worked together recently to install EV chargers across the mall. The retail complex contains the city's largest leisure hub with over 9 entertainment venues including India's first and largest indoor theme park Kidzania. Additionally, IKEA's first and only in-mall format is located in R City and covers 72,000 square feet.

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Runwal acquires GIC's 50% ownership in Mumbai's R City Mall

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