India’s Reliance Industries has entered into one billion dollar collaboration with Vornado Realty Trust listed on the New York Stock Exchange, in order to establish a real estate fund for creating an array of mega malls and highway shopping centres in India not just for Reliance but also others. With this move, Reliance will now be seen venturing into the real estate and hospitality segments.

 

In the past three months the Reliance has entered into a total of five international partnerships, with the Vornado JV being the fifth one. The other five joint ventures of Reliance are the ones with Marks & Spencer, Vision Express, Miss Sixty and Office Depot. The joint venture with Vornado is being seen as an important move as it will involve acquiring and overseeing of real estates and this is very important for the success of any real estate firm.

 

It is also suggested by a source that Reliance’s major foray into real estate could witness it making a similar move towards in the hospitality segment. A source pointed out that in order to reap profits out of the excess floor space index in few of its properties, this group may also be interested in establishing hotels. But on the other hand, it is equally true that the group has not taken up any definite decisions yet concerning its hospitality plans probably due to the sharply different skills needed for it.