CBRE, the world’s largest commercial real estate services firm, announced today that it successfully advised Japanese plumbing products manufacturer, TOTO Ltd., in a complex real estate transaction involving the company’s launch of its first production facility in Gujarat, India. TOTO is planning to begin construction of its sanitary ware plant in March 2012, with CBRE advising throughout the acquisition and commercial lease agreement process for the facility’s 180,000 square-meter plot, including management of due diligence, sales negotiations and support for legal matters.
In addition to producing high-end, state of the art products for affluent consumers, TOTO’s plant in Gujarat also plans to manufacture sanitary ware for the country’s expanding middle-income class, at a production rate of 400,000-500,000 units a year in meeting the needs of India’s high-growth market. The new plant is expected to be operational in July 2014.
Japanese companies continue to express interest in outbound investment opportunities, with particular interest centered in India, where, according to Teikoku Databank data, the marketplace has seen a nearly three-fold increase of Japanese companies entering the market in just the last five years. But despite the growing demand, the complexities of completing real estate transactions in international markets such as India, has prompted TOTO and other companies to seek the advisory support of global real estate services firms like CBRE.
“Thanks to our advisors at CBRE who were responsible for selecting and managing our legal teams and other professionals involved in this transaction, we successfully completed the procedures in closing this deal in a very efficient and timely manner,” says Toshikatsu Kondo, TOTO’s director for the project.
CBRE has managed several other real estate transactions on behalf of Japanese corporations in India, including the relocation of a large electrical appliance manufacturer in Haryana state, and the sale of a factory for a major appliance manufacturer in Kamataka state. Today CBRE operates offices in seven cities across India.
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