Piramal to invest Rs 1,800 cr on new residential project

Piramal Realty is investing Rs 1,800 crore on its upcoming residential project in Mulund suburb of Mumbai. The company said post demonetisation it is seeing good traction both in commercial and residential sales and it will be on course to achieve its sales target of Rs 1,250 crore for 2016-17.

“We are confident of achieving our sales target of Rs 1,250 crore for the 2016-17. While commercial sales account for 35 per cent of our portfolio, the balance will come from residential,” Anand Piramal, Executive Director, Piramal Group, told BusinessLine.

Speaking on the project Piramal Revanta, Piramal said that the company will be making the investment through a mix of debt and equity.

“We will be using the funds from Goldman Sachs and Warburg Pincus to develop the project. We have already received commencement certificate of our project,” he said.

In 2015, PE giant Warburg Pincus and financial services firm Goldman Sachs had separately invested Rs 1,800 crore and Rs 978 crore in Piramal Realty.

Piramal said that the project is expected to be completed in five to six years time period.

“About 25 per cent of the cost is on land, the balance will be for project execution,” he added. The project will consist of 1,2, 3BHK homes from 450 to 1,200 sq. ft.