HDFC Realty, Citigroup and Government of Singapore Investment Corporation (GIC), among others, are set to pump $300 million into Shapoorji Pallonji Group’s realty business.
Sources said the deal—amongst the biggest private-equity plays in the Indian real estate sector—was imminent and might also involve a few more investors. It is believed that PEs could pick 15-20% stake in the recently-created holding entity of the group’s realty venture.
When contacted, Shapoorji Pallonji & Company director Jimmy Parakh said: “We are in talks with PE investors. But we have not concluded any deal. We are raising $300 million.”
The Mumbai-based 140-year-old construction group is developing real estate worth about $2 billion across India. The group’s realty arm is managed by Shapoor Mistry, the elder son of Pallonji Mistry, among the wealthiest Indians.
ET had earlier reported that Mistrys could opt for a significant PE play in the realty business. But the group’s earlier plan involved attracting investment in a series of SPV-driven projects.
These projects are mostly FDI-compliant and located at prime areas, which will attract substantial premium. It is also working on over 10 real estate projects in Mumbai, Pune, Hyderabad, Chennai, Kolkata, Delhi, Nagpur and Mysore.
Source: Economic Times