In a bid to tap the growing tourism market in Gujarat, global real estate conglomerate, Pacifica Companies is mulling setting up a premium hospitality project in Ahmedabad.
"We have a 11,500 sq yards land bank on SG Highway. With the state government now allowing higher FSI for hospitality projects of larger sizes as part of tourism development, we are planning to venture into another such project in Ahmedabad," said Rocky Irani, managing director of Pacifica Companies, whose Indian operations are headquartered in Ahmedabad. The company also has two ongoing residential projects in Ahmedabad, apart from carrying a land bank of 50 acres in the city.
Under its US operations, Pacifica Companies recently won the bid for 700 foreclosed homes which were put up for auction by Fannie Mae, the largest government sponsored mortgage company in the United States.
According to Irani, the company purchased a 20 per cent managing interest in 700 Fannie Mae-owned residential properties throughout the state of Florida in the US for $ 12 million. The property portfolio of 700 units represent a rough transaction valuation of $78 million for Fannie Mae and a third party valuation of $81.5 million. "We will be managing and maintaining the properties, apart from collecting rentals and making efforts to boost property valuations. We are expecting to recover our managing member interest payment of $ 12 million in five years at an IRR of 17-18 per cent," Irani added.
In the US, Pacifica currently owns over 4,500 residential units, spanning over 40 states, with the majority in California, Florida, Nevada, Arizona and Washington.
