Piramal Realty, the real estate arm of Piramal Group, expects a revenue of ₹5,300 crore from its maiden commercial project. The company, which completed the first phase of the project, said it is open to developing more office spaces in the coming years. The commercial real estate project, Agastya Corporate Park, is located on the arterial LBS Road, Kurla, in Mumbai. Additionally, Piramal Enterprises Ltd (PEL) has bought close to 1.67 lakh sq ft space from Piramal Realty for an estimated ₹439 crore. PEL will anchor its offices at Piramal Ananta in Agastya Corporate Park. PEL is looking to consolidate its over 800 employees and their operations at the commercial hub.
“Commercial projects give an annuity in returns. We are open to developing more commercial projects. The total investment into this project was ₹2,400 crore including land and project execution costs,” Anand Piramal, Executive Director, Piramal Group, told BusinessLine .
Phase 1 of Agastya Corporate Park comprises three independent office buildings.
He said the project has a total leasable area of 1.9 million sq ft and is spread over an area of 16.25 acres.
Asked if the company was strata- selling or leasing out, Piramal said that the project will be leased out. “We may look at selling an entire building but it will be largely leased out. We are expecting a project revenue to the tune of ₹5,300 crore, including rentals and outright sale,” he added.
The lease rentals at the project are at ₹140 -150 per sq feet.
Goldman Sachs and Warburg Pincus, two international equity partners, have invested approximately $434 million in Piramal Realty, at the entity-level, which is the largest private equity commitment to the Indian real estate.
Agastya Corporate Park has been designed by Seattle-based Callison USA. BuroHappold managed the Structural & MEP Design services, while Belt Collins Singapore assisted in planning and design.