While New Delhi and Beijing are busy having a war of words over the Sikkim standoff and the issues surrounding the Doklam plateau, a Chinese firm is quietly making its mark in India and is on the verge of closing a real estate deal in Chennai. Country Garden, one of China's most popular township developers, is likely to buy a plot near the Adyar River soon.
The plot, a part of the 18-acre Adyar Villa property, was initially owned by industrialist A C Muthiah's family. It was later bought by Chennai's well-known property developer TVH, which may now strike a deal with the Chinese brand.
While either of the parties have not commented on the reported deal, it is being said that the deal could be valued at Rs 220 crore, which will be paid in cash, and TVH will also be allotted a share – about 20 percent – in the development, reported the Times of India.
"Country Garden has been planning a foray into the Indian realty market for some time; now it is on the verge of buying the Adyar Villa plot. The deal may have two components - around Rs 220 crore in cash and a share for TVH in the development," the daily quoted a source as saying.
The source also explained that TVH will be a local partner for Country Garden and the two parties will promote the project together.
Country Garden recently grabbed headlines when it became the only real estate developer to make it to the Fortune Global 500 2017 list with a rank of 467. The brand has a presence in China, Malaysia and Australia through about 200 high-end townships and will make its India entry soon. For this, the Guangdong-based firm setting up offices in Gurugram, Bengaluru, Mumbai, Chennai and Kochi.
Apart from the Adyar property, Country Garden is also said to be in talks to develop townships in Bengaluru, Delhi and Mumbai.
The proposed deal comes at a time when India and China have been locked in a standoff and much has been spoken about how Chinese goods must be boycotted in India. While many, including the RSS, have been calling for the boycott, China believes that the calls haven't really had an effect.
Lü Qingyong, who heads the India operations of the Sichuan Jinwangtong Electronic Science and Technology Co, told the Global Times: "We haven't been impacted at the moment." But he did say that this could be because their customers are mostly corporations and not individuals.
However, he also believes that other Chinese firms in India could take a hit due to the Sikkim standoff. "Companies like OPPO and Vivo that directly face consumers might be affected a little," Qingyong added.
Meanwhile, Country Garden probably hopes that the standoff is resolved soon so that the proposed deal with TVH isn't affected.
