Global private equity (PE) player Warburg Pincus will invest Rs.1,800 crore in Piramal Realty, the real estate development arm of Piramal Group, for a minority stake in the company.
While there has been a general upswing in the participation of private equity (PE) players in Indian real estate, this will be one of the largest foreign direct investments (FDI) in India’s real estate sector.
Piramal Realty was founded in 2011, and has over 10 million sq. ft. under development in different parts of Mumbai, including Byculla, Thane, Worli, Bandra-Kurla Complex and Mulund. A statement from Piramal Realty said the capital raised would be used to expand its portfolio and acquire marquee land parcels in and around Mumbai.
“Warburg Pincus invests in companies with high growth potential and believes that Piramal Realty is best positioned to achieve leadership in one of the world’s most attractive real estate markets,” Niten Malhan, Co-Head of India, Warburg Pincus, said in a statement.
The U.S.-headquartered Warburg Pincus has raised 14 PE funds, which have invested more than $50 billion in over 720 companies in more than 35 countries. Its past and current investments in India include Ambuja Cements, Bharti Airtel, Gangavaram Port, Metropolis healthcare, Kalyan Jewellers and HDFC, among others.
This is Warburg Pincus’ second investment in the Piramal Group. It had invested in Piramal Healthcare in 1997. “Warburg Pincus’ investment and expertise will raise the level of real estate in India to international standards, as it has done in other industries such as telecom, financial services and pharmaceuticals,” Ajay Piramal, Chairman, Piramal Group, said in a statement.
