Pi­ra­mal Realty ties up with Omkar Real­tors for 12-acre project in Mum­bai

HT Estates - - HTESTATES - Mad­hurima Nandy mad­hurima.n@livemint.com

BENGALURU: Pi­ra­mal Realty, the real es­tate de­vel­op­ment arm of Pi­ra­mal Group, has en­tered into a de­vel­op­ment agree­ment with Omkar Real­tors and De­vel­op­ers Pvt. Ltd for a 12-acre project in Ma­ha­laxmi, a prime lo­ca­tion in Mum­bai.

Pi­ra­mal Realty in­tends to in­vest Rs2,600 crore in this de­vel­op­ment. It will pay a de­posit of Rs400 crore and will have a 60% rev­enue share in the project.

Ac­cord­ing to the agree­ment, Pi­ra­mal Realty will lead de­sign, de­vel­op­ment, con­struc­tion, sales and mar­ket­ing of the project. Withover2mil­lionsq. ft of de­vel­op­ment, this will be one of the largest pre­mi­um­res­i­den­tial­pro­jects in south Mum­bai.

The de­vel­oper plans to build high-rise res­i­den­tial tow­ers on the plot.

“Re­formssuchasRERA, GST, de­mon­e­ti­za­tion are driv­ing con­sol­i­da­tion inthe­re­alestatein­dus­try. Thi­sis­agreat­time­forin­sti­tu­tion­al­ized play­ers with a strong track record and ro­bust bal­ance sheet to grow and ex­pand their foot­print,” said Anand Pi­ra­mal, founder, Pi­ra­mal Realty.

Launched in 2012, Pi­ra­mal Realty is led by Ajay Pi­ra­mal’s son Anand.

The firm is backed by pri­vate eq­uity firm War­burgPin­cu­sand in­vest­ment­bankGold­manSachs Group Inc., which in­vested Rs1,800 crore and Rs900 crore, re­spec­tively, in 2015.

Joint de­vel­op­ment agree­ments have been a life­line for mid-sized de­vel­op­ers, who are un­able to de­velop cer­tain projects on­their own­due­toaliq­uid­ity crunch, ow­ing to a pro­longed slow­down in the sec­tor. Such pacts with larger realty firms al­lowthem­tomon­e­tizetheir­land hold­ings and pare debt.

Last year, Pi­ra­mal Realty boughta3.2-acre­land­fromMum­bai-based de­vel­oper Nir­mal Life­style Ltd for Rs153 crore. De­vel­op­ers such as Nir­mal, which­havethe­landbutare­un­able to de­velop the­mon­theirown, have­been­look­ing­for­part­ner­sto mon­e­tise such as­sets.

Nir­mal­formeda­jointven­ture with Go­drej Prop­er­ties Ltd to de­velop a res­i­den­tial project in sub­ur­ban Thane, near Mum­bai, in 2017, and also signed a joint de­vel­op­ment agree­ment with L& T Realty Ltd for an­other project in sub­ur­ban Mum­bai’s Mu­lund.

Gau­rav Gupta, direc­tor, Omkar, said, “Our as­so­ci­a­tion with­Pi­ra­malGroup­dates­backto 2010 with the Group fund­ing many of our projects.

The cur­rent trans­ac­tion with Pi­ra­mal Realty will strengthen our re­la­tion­ship and we are ex­cited to part­ner with them to de­liver anex­cel­lent value propo­si­tion for all our stake­hold­ers.”

Pri­mar­ily a de­vel­oper of pre­mium res­i­den­tial projects in Mum­bai, last year Pi­ra­mal Realty said it would in­vest Rs2,400 crore in its first com­mer­cial project, a 16-acre cor­po­rate park­comin­gu­patKurlainMum­bai. The firm has also been look­ing to buy land in the Mum­bai Met­ro­pol­i­tan Re­gion to ex­pand its com­mer­cial real es­tate busi­ness.

MINT/PHOTO

High­rise homes are likely to be built on the plot

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