Tokyo-based diversified conglomerate Sumitomo Corporation on Thursday announced its joint venture worth $2 billion with Indian partner Krishna Group for an integrated township project in Gurgaon. The 50:50 joint venture, Krisumi Corporation, will build 5,000 flats priced from\u00a0Rs 1 crore onwards, a shopping mall, office space and an educational institution at 65-acre land parcel in Sector 36-A, Gurgaon. The project, which will have a total built-up area of 18-18.5 million square\u00a0feet, will be developed in phases, the two partners told reporters.\u201cThe first phase will comprise 1.2 million square feet of built-up area, consisting of 430-450 apartments and will be completed in four to five years,\u201d Krisumi chairman Ashok Kapur said, adding that the project will be compliant with the Real Estate (Regulation and Development) Act. The Krishna Group is a diversified business house with interests in auto components, media, travel, and entertainment seating. Currently, India allows 100% foreign direct investment under the automatic route in the construction development segment, which includes townships, housing, built-up infrastructure and real estate broking services. This will be the first time that a Japanese company will participate in the Indian real estate space. \u201cIndia's real estate sector is going through an interesting phase. While consumer's expectations have evolved manifold, most of the traditional developers are finding it difficult to effectively cater to all their requirements,\u201d said Masahiro Narikiyo, chairman and MD, Sumitomo India. Sumitomo\u2019s construction and real estate business constitute one of the largest investors, developers and managers of residential, retail and office properties and large-scale mixed-use urban redevelopment projects in Japan. Sumitomo has executed 300 real estate projects across Japan, the US, China, Singapore, Indonesia and Vietnam.\u201cMany other countries are eyeing to enter the Indian real estate market and after this JV (joint venture) a lot of them will be coming in,\u201d Kapur said.