Reliance Industries ltd stated in stock exchange filings of foraying into commercial real estate and incorporating a new unit called Reliance SOU Ltd. The company mentioned that they have done the initial funding of Rs 1 lakh in the newly launched subsidiary. “RIL in the filing said incorporating a completely owned subsidiary, Reliance SOU Limited (RSOUL). With this new move, RIL has now come into the direct league with the big commercial real estate sector players like Adani properties, Tata Realty & Infrastructure, and Shapoorji Pallonji & Co.
This new venture by Reliance is yet another stake in transforming the company from being a massive energy player to a more consumer focussed business group.
In 2019, RIL had also shown interest in real estate by acquiring a 65 percent stake in the project “Bandra Kurla Complex” in Mumbai for a sum of Rs. 1,105 crores. Soon after Reliance set up Reliance Navi Mumbai Infra Development for real estate development by investing Rs. 5 Lakh as initial capital in the entity. Their real estate vertical is also taking up projects actively like the Jio world centre and Jio world garden at Bandra Kurla.
The commercial real estate market is booming in India with the increase of occupier’s interest and the rise of small and medium real estate developers along with a section of institutional capital which has acted as the growth catalyst for this sector. For a conglomerate like RIL taking interest in real estate does not come as a surprise.
As per Colliers, the total leasing during the financial year 2022 was noted to be 50.3 million soft, the highest in any year.
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