Hous­ing firm Ma­haveer gets ₹380 crore from Pi­ra­mal Fi­nance

Hindustan Times (Chandigarh) - Estates - - 3 - Mad­hurima Nandy mad­hurima.n@livemint.com

BENGALURU: Af­ford­able hous­ing com­pany Ma­haveer Group has raised Rs380 crore from Pi­ra­mal Fi­nance Ltd for five of its projects in Bengaluru, three peo­ple fa­mil­iar with the trans­ac­tion said.

The builder plans to mainly use the money as work­ing cap­i­tal and partly for re­fi­nanc­ing pur­poses. Pi­ra­mal has ex­tended the money as con­struc­tion fi­nance. A small part of it will be used to give an exit to Moti­lal Oswal Real Es­tate Fund, which had in­vested around Rs22 crore at an early stage of a project.

This is the sec­ond large deal in bud­get hous­ing af­ter Mahin­dra Lifes­pace De­vel­op­ers Ltd—the real es­tate arm of Mahin­dra Group—part­nered with HDFC Cap­i­tal Ad­vi­sors Ltd in Oc­to­ber to jointly in­vest Rs500 crore over the next three years to de­velop af­ford­able hous­ing projects.

While that trans­ac­tion aimed to in­vest in af­ford­able hous­ing projects by pro­vid­ing pa­tient cap­i­tal in the form of long-term eq­uity, the Pi­ra­mal-Ma­haveer deal mainly taps the con­struc­tion fi­nanc­ing route.

“The five projects are in var­i­ous stages of de­vel­op­ment, in­clud­ing early stage and ad­vanced stage of con­struc­tion. Most of th­ese projects are be­ing sold in the mid-in­come price cat­e­gory, at a base price of Rs3,300-4,400 per square foot,” said Praveen Kum­bala, man­ag­ing di­rec­tor of Ma­haveer Group.

In early 2016, pri­vate eq­uity firm Penin­sula Brook­field In­vest­ment Man­agers Pvt. Ltd had in­vested Rs100 crore in mid­in­come hous­ing firm Ma­haveer Group’s projects in Bengaluru. Kum­bala said the re­pay­ment process is on. Sharad Mit­tal, di­rec­tor and head of real es­tate funds at Moti­lal Oswal Real Es­tate, con­firmed the Ma­haveer exit and said the in­vest­ment gen­er­ated good re­turns.

A Pi­ra­mal spokesper­son de­clined to com­ment on the deal. Pi­ra­mal, one of the largest lenders and in­vestors in real es­tate, has grown its fi­nan­cial ser­vices busi­ness from Rs35,000 crore in De­cem­ber 2016 to Rs50,000 crore now, in­clud­ing both sanc­tioned loans and de­ployed money.

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