Indiareit Fund Advisors, the venture capital firm controlled by the Piramal Group, plans to invest in a housing project along Mumbai's eastern coast, seeking to overcome a land shortage and rising prices in the city center.
Mumbai-based Indiareit will invest 1.5 billion rupees ($38 million) in Samira Habitats, a company that's developing luxury villas and apartments in Alibag, on the mainland across from the Mumbai island, Managing Director Ramesh Jogani said in an interview yesterday.
“It will be a way out of Mumbai's congested infrastructure,'' Jogani said. “The projects will make Alibag a base of primary homes, instead of holiday and weekend homes as in the past.''
Residential prices in south Mumbai have more than doubled in the past three years, as India's booming economy bolstered the spending power of local residents and prompted overseas companies to bring in workers. Mumbai also has the second- priciest offices in the world after London, according to CB Richard Ellis Group Inc.'s semi-annual Global Market Rents survey.
The state government is setting up three special economic zones and a new port at Rewas across from Mumbai's harbor. It also plans to connect the area with Mumbai by constructing a 21- kilometer trans-harbor bridge.
Houses in the 400-acre Samira Habitats project will cost between 5 million rupees ($127,000) and 100 million rupees when they go on sale at the end of next year, Jogani said. Alibag, located about 34 kilometers (21 miles) south of Mumbai, is a popular weekend getaway among the city's affluent residents.
The Piramal Group controls companies including Nicholas Piramal Ltd., the nation's seventh-biggest drugmaker by market value.
Source: Bloomberg