In an attempt to accelerate its real estate project building process on its land parcels, the Piramal Realty has decided to generate Rs. 900cr to construct residential units on its land parcels including a seven-acre plot in Byculla, bought from Mafatlal industries and also another one-acre plot acquired from Hindustan Unilever. In addition, it is also contemplating to build two more land parcels located in Kurla and Thane. These residential projects would be built through a special purpose vehicle (SPV) and the player is currently scouting partners including global PE funds ensuring smooth flow of funds required for building these projects, said an industry insider, claiming that the player is currently negotiating with US-based private equity (PE) fund Warburg Pincus.
According to market watchers, in case the deal with Warburg Pincus fructifies, it will mark Warburg's foray into the Indian real estate sector. They added that the offshore funds are currently taking an active interest to invest in the Indian real estate sector. In view of the fact that Piramal Realty is a reputed company with assets in profitable locations and a good corporate governance track record, it can attract the attention of global PE funds.