MUMBAI: Global investment bank Goldman Sachs has picked up a minority stake in Mumbai-based Piralmal Realty for nearly Rs 900 crore, almost a month after the latter received the largest foreign direct investment ever in the country's realty space.
Last month, an affiliate of Warburg Pincus, a leading global equity firm focused on growth investing, committed an investment of Rs 1,800 crore for a minority stake.
"We will utilise these funds for further expanding real estate portfolio and acquire prime properties in and around Mumbai," Piramal Group Executive Director Anand Piramal told PTI today.
"Our focus will continue to remain the Mumbai metropolitan region as we see huge scope for growth in these regions, given the inadequate supply of affordable housing," he said.
He said Goldman Sachs, which has deployed nearly USD 2.5 billion in India since 2006, has helped in developing some of the world's finest buildings, such as 15 Central Park West in New York and 16 Colleyers Quay in Singapore.
"Their experience and expertise will further inspire us to build world-class developments in India and achieve the highest standards of design, technology, quality, execution and customer service," Piramal said.
Commenting on the deal, Goldman Sachs' Asia Co-head of private equity Ankur Sahu said, "This investment is consistent with our ongoing strategy of partnering with India's leading entrepreneurs to invest in sectors critical to the country's development."
He said the government's focus on simplifying regulation and boosting economic growth will kick start investment and consumption.
"Under such a cyclical recovery the demand for high-quality, modern housing and office space from a trusted, proven brand and standard-setting developer will serve to create a significant leader in Indian real estate," Sahu added.
Meanwhile, Piramal Realty also launched its first-of-its-kind buy back guarantee scheme--Piramal Assurance under which the company will offer to buy back any residential unit from a customer at a five percent discount to the market value until possession if a buyer not be satisfied.
"For most customers, buying a home is their single largest and most important investment. This scheme will reduce the financial risk of purchase for the customers who will know that their investment is safe and liquid," Piramal said.
"This also will set high performance expectations for our team and will compel us to keep our customers happy and at the centre of our business," the company added.
Piramal Realty has over 10 million square feet of commercial and residential projects under development in prime areas of Mumbai like Byculla, Bandra Kurla Complex, Mulund, Worli and neighbouring Thane.
In the next few months, the company plans to launch Piramal Vaikunth in Thane, a mixed-use complex spread across 30 acre, which will comprise high-rises, townhouses, world-class amenities, among others.