A unit of Warburg Pincus, a private equity company based in New York, has decided to invest $284 million in Piramal Realty Projects Mumbai for the minority stake. Piramal Realty Projects Mumbai is a real estate arm of Piramal Group, a $5 billion conglomerate in Mumbai owned by Ajay Piramal. Along with real estate development, the Mumbai-based conglomerate also focuses on financial services, pharmaceuticals and glass manufacturing. In the history of Indian real estate, it is going to be the largest real estate deal. With the series like Blackstone, it shows that the private equity companies overseas are more attracted to the long-term growth potential of real estate sector in India. Blackstone has invested in Pune-based Company Panchsheel Realty and Embassy Property Developments in Bangalore owned by Jitendra Virwani. Piramal Realty Projects Mumbai is the proud owner of over 10 million sq. ft. of land parcel in various promising areas like Worli, BKC, and Byculla in Mumbai. According to Anand Piramal, Executive Director, Piramal Group, if India is going to be the third-largest economy of the world, it’s the time that the companies like Warburg Pincus consider them as the real estate leader in Indian real estate. Anand Piramal, son of owner Ajay Piramal, is going to invest in SPVs (Special Purpose Vehicles) to set up various specific projects and Warburg invested at entity level. The real estate sector of the country is passing through the slowdown of several years due to delayed government clearances, lack of clear policy, slowed demand and non-availability of funds for residential projects. But Anand Piramal Realty Projects Mumbai looks this outbreak as opportunity. Real estate has been going through a tough time and the market is soft. So, it is the best time for the leaders to buy assets with their holding power. According to him, the real estate sector is at the bottom and will trend upward soon. The government is trying to make the policies simpler to seek approvals without corruption. According to CEO Mike Holland, Embassy Office Parks, the company Piramal Realty Projects Mumbai is witnessing great level of focus from international and domestic investors. It shows the positive sentiments to India.
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