In one of the largest FDI deals in realty sector, global private equity Warburg Pincus will invest Rs 1,800 crore in Piramal Realty, which would use the funds to develop mixed-use projects in the megalopolis.
An affiliate of the New York head-quartered PE giant Warburg Pincus has agreed to invest Rs 1,800 crore in the Ajay Piramal group company and would get two seats on the Piramal Realty board in return, which will be reconstituted soon.
"This is the largest FDI received by any domestic realty firm. We will use the funds for completing our existing projects as well as to expand our portfolio, which will focus on mixed-use projects," Piramal Group executive director Anand Piramal told PTI.
The city-focused Piramal Relaty has a slew of residential and commercial projects in and around metropolis and with this funding the company will now get into mixed use projects as well as in a big way.
"Out of the total development, nearly 70 per cent in residential and 30 per cent commercial. Our development plans will depend on the area and the need of that region. But a mixed-use development will be good format," Piramal said.
Commenting on the investment, Piramal Group chairman Ajay Piramal said, "We are delighted to partner with Warburg Pincus for a second time, having invested in Piramal Healthcare in 1997, and now with Piramal Realty.
"Warburg's investment and expertise will raise the level of real estate in the country to international standards, as it has done in other industries such as telecoms, financial services and pharmaceuticals."
He also said the company will invest in buying marquee land parcels in the city with the funds.
"We are a Mumbai-based firm and we will continue to focus on this market where there is huge potential for real estate. There are land parcels which can be exploited to develop residential projects," he added.
