Piramal Realty, the real estate development arm of the Piramal Group, announced that Goldman Sachs, a leading global investment bank and active investor in India, will invest US$ 150 million for a minority stake in the company.
The funds will be used to expand the company’s current real estate portfolio and acquire prime properties in and around Mumbai.
Anand Piramal, Executive Director of the Piramal Group said “As one of the leading investors in global real estate, Goldman Sachs has helped develop some of the world’s finest buildings, such as 15 Central Park West in New York and 16 Collyer 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.”
In tandem with this investment, Piramal Realty, announced plans to launch a first-of-its-kind buy back guarantee called "Piramal Assurance." Subsequently, the company will offer to buy back any residential unit from a customer at a five percent discount to the market value until possession should a buyer not be satisfied.
Anand Piramal commented, "For most customers, buying a home is their single largest and most important investment. Our ‘Assurance’ will reducethe financial risk of purchase and provide peace of mind for customers, who will know that their investment is safe and liquid. 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."
Founded in 2011, Piramal Realty has over 10 million square feet of commercial and residential projects under development in prime areas of Mumbai, such as Byculla, BKC, Mulund, Thane and Worli. In the next few months, Piramal Realty will launch Piramal Vaikunth in Thane, a mixed-use complex designed by HOK, the number one ranked architecture/engineering firm by Engineering News-Record and Architectural Record.
This exciting destination will feature high-rises, townhouses, world-class amenities, an iconic tower, a spiritual learning centre, retail opportunities and an arts complex, all nestled in a 34-acre oasis with over 6,000 trees.
Ankur Sahu, co-head of private equity at Goldman Sachs in Asia said, “We are excited to work with the Piramal Group. 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. 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.”
