Bengaluru: Mumbai-based Piramal Realty, the real estate arm of Piramal Group, will invest around Rs 1,800 crore in its new residential project in suburban Mumbai.
The company has pre-launched its eight-acre project Piramal Revanta in Mulund and will sell homes at around Rs 12,000 per sq. ft. The project has one, two and three bedroom homes of 450-1,200 sq. ft.
The investment includes land cost, project development and execution costs.
With the Mulund project, Piramal Realty now has four residential projects and one commercial office project.
“We are initially thinking if we should launch the project due to the impact of demonetisation, but considering the demand that we saw, we decided to stick to the launch schedule,” said Anand Piramal, executive director, Piramal Group.
Launched in 2012, Piramal Realty is led by Ajay Piramal’s son Anand Piramal, an executive director in the group, and backed by private equity firm Warburg Pincus and investment bank Goldman Sachs Group Inc. Warburg Pincus invested Rs1,800 crore in the company and Goldman Sachs pumped in Rs900 crore in 2015.
In an interview last year, Piramal had said that the company plans to clock about Rs 1350 crore of sales in 2016-17.
“Let’s see how our Mulund project sales go, but we are on track to meet the sales target,” he said on Tuesday.
Last September, Piramal Realty appointed N.M. Gattu, formerly with DB Realty Ltd, as the company’s first dedicated chief financial officer with plans to buy more land and eye faster expansion and growth.
In 2017-18, the company plans to buy a land parcel or two and launch the projects.
“In the last two years, we have looked at land parcels but land owners weren’t rational. We believe that has changed and land should be now available at fair prices,” he said.