Wadhwa Group is also planning to launch a mixed use project that includes residential, commercial, retail, and hospitality space, spread across 550 acres in Navi Mumbai (a satellite town of Mumbai city) in the next 12 months. (Wadhwa Group is also planning to launch a mixed use project that includes residential, commercial, retail, and hospitality space, spread across 550 acres in Navi Mumbai (a satellite town of Mumbai city) in the next 12 months.)
Wadhwa Group is also planning to launch a mixed use project that includes residential, commercial, retail, and hospitality space, spread across 550 acres in Navi Mumbai (a satellite town of Mumbai city) in the next 12 months.
(Wadhwa Group is also planning to launch a mixed use project that includes residential, commercial, retail, and hospitality space, spread across 550 acres in Navi Mumbai (a satellite town of Mumbai city) in the next 12 months.)

Wadhwa Group raises `110 cr for luxury project

Wadhwa Group is also planning to raise private equity funding of `175-200 crore for the same project, says CEO Gopalan

Mumbai: Wadhwa Group, a Mumbai-based developer, has raised 110 crore of debt from non-banking finance company (NBFC) JM Financial Products Ltd to fund a luxury project in central Mumbai.

The project will have 54 housing units priced at more than 10 crore each, according to Srinivasan Gopalan, chief financial officer and chief operating officer of the Wadhwa Group.

A JM Financial spokesperson confirmed the deal.

Wadhwa Group is also planning to raise private equity (PE) funding “of 175-200 crore for the same project, Gopalan said.

Luxury residential projects priced in the 10-12 crore range are still attracting demand, unlike projects in the 3-8 crore category that have been affected by the downturn in the economy and weighed down by excessive supply, according to Om Ahuja, chief executive officer, residential services, at Jones Lang LaSalle (India), a real estate consultancy.

However, fewer PE firms are investing in the residential segment.

PE investment in residential projects dropped 48% to $156 million in the first half of 2013 from the year-ago period; total investment in real estate dropped 46% to $276 million in the same period, according to a 30 July report by real estate consultancy Cushman and Wakefield.

“Investors are wary of investing in greenfield projects given the macroeconomic situation. The demand for NBFC money has grown in the last two years and this will continue in this financial year," said Rajeev Bairathi, executive director, capital transactions, at property advisory Knight Frank India.

Wadhwa Group, according to Gopalan, has earmarked “an investment of 100-200 crore for each of the five residential projects" it hopes to launch this fiscal year. Three of these projects are expected to be launched by November, he said.

Most of these projects are being undertaken in partnership with local developers.

In May, the company received 350 crore for its slum rehabilitation project from IIFL Realty Fund, the private equity arm of financial services firm India Infoline Ltd (IIFL). “This project will be launched in December," said Gopalan.

Wadhwa Group is also planning to launch a mixed use project that includes residential, commercial, retail, and hospitality space, spread across 550 acres in Navi Mumbai (a satellite town of Mumbai city) in the next 12 months.

The Wadhwa Group is hoping to finalise one of the biggest PE investment deals worth 1,000 crore with Morgan Stanley Real Estate Investing by the first week of September, Gopalan said. The deal is for a commercial project called ‘One BKC’ in the Bandra-Kurla Complex (BKC) business district of Mumbai.

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