MUMBAI: Piramal Mahalaxmi , the real estate development arm of the Piramal Group, is planning to invest over Rs 3,500 crore to develop residential projects in Mumbai Metropolitan Region (MMR) over the next 3 years with a significant focus on mid-market segment, said a top company official.

The company, which counts Goldman Sachs and Warburg Pincus as its investors is foraying into the mid-market compact housing segment with a 5-acre development as part of its larger 32-acre township project Piramal Vaikunth in Thane.

Of the total planned investment of Rs 3,500 crore, the company will be investing Rs 1,500 crore to develop 2 million sq ft on this 5-acre plot. The company will be offering 1 and 1.5 bedroom apartments with configurations of 350-500 sq ft priced at Rs 60 lakh to Rs 80 lakh.

œThe combination of the right product, location, and ticket size ensures good response, and our recent launches in South Mumbai have reinforced this. Luxury will do well but this is also a good segment to be in and right now the market prefers compact units, Anand Piramal, Executive Director, Piramal Group told ET. œThe proposed investment will be supported through a mix of internal accruals, debt, and some part of equity.

The company is planning to launch 3 more projects by July--including projects at Mahim, Thane, and a new tower at its Mahalaxmi development--and will be making compact housing a part of all of its projects hereon. Last month, the company entered into a joint development agreement with Omkar Realtors & Developers for a 2.2 million sq ft residential project spread over 4 acres in Mumbai's Mahim locality.

It is planning to add a total of 10 million sq ft projects in 2020 to its existing 17 million sq ft ongoing development portfolio. South Mumbai projects including Mahalaxmi(Piramal Mahalaxmi) and Byculla(Piramal Aranya) continue to contribute 50% of the company's portfolio.

Piramal Realty has clocked in sales of over Rs 1,250 crores in the first 3 quarters of the financial year 2019-20, of which over Rs 450 crore was achieved during the quarter ended December. The company witnessed a growth of over 50% for ongoing projects during the first nine months as compared to a year ago. Piramal expects the company to end the financial year 2019-20 with revenues worth around Rs 2,000 crore led by the performance of ongoing projects and new launches.

The company will continue exploring new land parcels in the Mumbai Metropolitan Region (MMR) for residential and commercial developments, he said.

œWe have been receiving proposals from landowners for outright sale and joint developments. Most of the landlords have toned down their expectations now in line with the market realities. Apart from landlords, lenders have also started approaching for completion of projects, Piramal added.

Officially Published at Indiatimes

Visit the Official Website for more details.

Email at: SALES.PRPL@PIRAMAL.CO.IN

Tags: