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S. Shanker

Mumbai, Jan. 10 In what appears to be first signs of a revival of foreign investors’ interest in Indian realty after a prolonged drought, a UK-based FI has agreed to purchase 86 units from Mumbai-based Sunil Mantri Realty for about Rs 50 crore.

The units comprise a single tower and are part of a 900-unit project the realty firm is developing at Goregaon in Mumbai.

Mr Manish Grover, Vice-President , Marketing, Sunil Mantri Realty, said the buyer intended the purchase for investment. He was not ready to divulge any names.

Mr Grover said FI interest seems to be returning and this investor was among the many who had contacted him. “One should understand that such investors apparently understand that market sentiments are down as well as prices,” he said, adding that most of them were forthright in demanding over 30 per cent discount on the price.

The Mantri Group has finalised the sale close to its retail price of Rs 6,050 a square foot.

About 60 per cent of the project has been sold and there appears to a jostle among FIs for the remaining units.

Mantri Realty was the first among the builder fraternity to offer a buyback agreement to its clients in case the apartment sale rate fell below today’s purchase rate three years later. However, the offer was open only for a short duration and closed after 100 units were booked with Mr Sunil Mantri, Chairman, stating that he could commit only as much as he was comfortable with.

The FIs have just approached the Mantri Group and almost all developers are being contacted, said Mr Grover.

Matheran Realty, which is building 15,000 affordable homes at Karjat, about 100 km from Mumbai, too appears to have been bombarded by FI enquiries for bulk purchase.

Matheran, which initially came out with 300 sqft apartments priced at Rs 3 lakh last year, had in December launched bookings for 160 sqft units priced at Rs 2 lakh each.

Mr Pravin Banavalikar, CEO, said he was getting queries for 1,000-plus units assuring immediate settlement as a matter of routine, but had rejected them as the company had decided to partner the Mumbai Metropolitan Region Development Authority to launch the Government agency’s rental housing programme.

Matheran will provide 6,000 homes of 160 sqft each valued at Rs 2 lakh to the authority, which in exchange will permit a higher floor space index of four for the project against the earlier 0.5. In addition, MMRDA will also provide offsite infrastructure support such as power, roads and water supply to the project.

“We are also getting offers for equity participation in the project,” said Mr Banavalikar.

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