Goldman Sachs to invest $150 million in Piramal Realty

Updated - March 29, 2016 03:49 pm IST

Published - August 17, 2015 06:17 pm IST

Leading global investment bank Goldman Sachs will invest US$ 150 million (Rs 900 crore) for a minority stake in Piramal Realty, the real estate development arm of the Piramal Group.

Piramal Realty will use the funds to expand its current real estate portfolio and acquire prime properties in and around Mumbai, the company said in a statement.

"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," Ankur Sahu, co-head of private equity at Goldman Sachs in Asia said in a statement.

"As one of the leading investors in global real estate, Goldman Sachs has helped develop some of the world’s finest buildings," Anand Piramal, executive director, Piramal Group, said. "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 Realty also announced plans to launch a buy-back guarantee called 'Piramal Assurance’. Subsequently, the company will offer to buy back any residential unit from a customer at a five per cent discount to the market value until possession, should a buyer not be satisfied. "Our 'Assurance’ will reduce the financial risk of purchase and provide peace of mind for customers who will know their investment is safe and liquid," Mr. Piramal said.

In July 2015, leading global private equity firm Warburg Pincus had also invested Rs 1,800 crore (US$ 284 million) for a minority stake in Piramal Realty. The investment ranks amongst the largest foreign direct investment (FDI) in the Indian real estate sector. Warburg Pincus had also invested in Group company Piramal Healthcare in 1997.

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 (BKC), Mulund, Thane and Worli. In the next few months, Piramal Realty will launch Piramal Vaikunth in Thane which is a mixed-use complex designed by Chicago-based architectural firm, HOK.

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