Vornado, Reliance In $500M Retail JV

MUMBAI, INDIA-Vornado Realty Trust and Reliance Industries Limited are each spending up to $250 million to buy and develop shopping centers throughout India. The centers, between 500,000 sf and one-million sf, will count Reliance-owned and operated hypermarts as anchors.

Reliance, based here, operates more than 700 retail stores throughout India. Under its Reliance Retail Limited division, the firm has stores in virtually every sector of the industry, including supermarkets, electronics, apparel and books and music.

Earlier this week management announced a deal to bring London-based toy chain Hamleys to India, opening stores in major cities throughout the country, starting next year. The company has also entered a joint venture with Office Depot to enter India.

New York City-based Vornado owns 176 retail properties across the country totaling nearly 22-million sf. The firm also owns a one-third stake in the Toys “R” Us chain.

Vornado President Michael Fascitelli had said in June last year that the company was looking at entering India’s retail market at some point.