Mumbai: Edelweiss Real Estate Advisory Practice (REAP) has stepped in to help sell office space in Parinee Group’s project in south Mumbai, a year after Edelweiss Group’s non-banking finance company (NBFC) ECL Finance Ltd funded it.
Last year, Parinee raised around Rs400 crore from ECL Finance for the project, which was then planned as an upscale residential development called ‘Parinee Xclusive’.
Now, the 8 lakh sq. ft. luxury housing project is being converted into a 50-storey office building and renamed as ‘Parinee Eminence’ in a bid to capture the growing demand for office space in the area.
The Mumbai-based developer has now brought in REAP as an exclusive partner to sell the commercial project.
“The project has been converted primarily as there is a huge supply of residential projects within the vicinity. But when it comes to offices for small and medium enterprise businesses, there is a shortage," Ram Yadav, chief executive officer, Edelweiss Real Estate Advisory Practice told Mint. Spread across 2.48 acres of prime land, the commercial project in Worli has a development potential of around 7.5 lakh sq. ft. It would comprise office spaces of 567 sq. ft. to 1,104 sq. Ft. with prices starting from Rs2.12 crore (per office unit).
In a joint statement, Parinee and Edelweiss said the commercial project would “address the continuously accumulating demand from small and medium enterprise (SMEs) owners, entrepreneurs, professionals and start-ups for small and medium-sized offices in a modern commercial environment."
The past year has seen real estate firms shrinking their residential project portfolios and moving towards office projects due to tepid housing sales and cash flow issues. Developers in the Delhi-National Capital Region (NCR), which has been affected the worst in the ongoing slowdown, are taking up office development which has growing interest from both institutional and individual investors.
NCR-based builders such as Logix Group and Alpha Corp., which have largely developed residential projects are now looking to ramp up their commercial real estate portfolios. Mumbai-based Lodha group has also chalked out plans to expand commercial office business in a big way.