Shapoorji Pallonji Real Estate ties up with Nirmal to build residential projects in Mumbai
Mumbai: Realty firm Shapoorji Pallonji Real Estate has tied up with property developer Nirmal Ltd to build two residential projects in Mumbai that would entail an investment of around Rs3,000 crore, said senior executives of both firms.
Under the agreement, Shapoorji would sell, market and look into the overall development of the project while Nirmal would continue to hold the land and be responsible for funding of the project.
Dharmesh Jain, chairman and managing director, Nirmal Ltd, told Mint that the projects would be funded through a mix of internal accruals and debt.
“We are in advanced discussion to raise some funds to finance the project. Over the 60-90 days we should able to tie up with institutions,” Jain said.
The two projects would spread across a total of 3 million sq ft each at Mulund, comprising around 4,000 units with prices ranging between Rs75 lakh to 1.5 crore. Both the projects would be launched within the next six months, he said.
This is the fourth tie-up for Nirmal in the last one year. The Mumbai-based firm has been looking for partnerships to either monetise land parcels it owns in Mulund and Thane, suburbs of Mumbai, or fast-track some of the developments around the area. Previously, it had entered into deals with Godrej Properties Ltd and L&T Realty.
For Shapoorji Pallonji, the development management business comprises around one-fifth of the total portfolio of the company. The rest are either managed and owned by the company or under joint development with a partner firm, said Venkatesh Gopalkrishnan, chief executive officer, Shapoorji Pallonji Real Estate.
Under the developer management model, large realty firms step in as development managers for smaller developers and landowners, in return for a share of the revenue, share of profit or a management fee.