Piramal Realty invests ₹4,300 cr in new residential project

Five years after it acquired a land parcel at Byculla in Mumbai from Mafatlal Industries, Piramal Realty said it will be using the land for launching a residential project with an estimated investment of ₹4,300 crore.

The 70-storey building spread across seven acres, Piramal Aranya, is adjacent to Jijamata Udyan, better known as the Byculla zoo. The 3-4 BHK houses are priced between ₹8 crore and ₹12 crore.

“We are looking at a revenue realisation of ₹8,000 crore from the project. The project is estimated to be completed in the next five years,” Anand Piramal, Executive Director, Piramal Realty, the real estate arm of Piramal Enterprises told

BusinessLine .

Approvals in place Asked why the company was starting the project almost five years after it acquired the land parcel, Piramal said, “we don’t launch a project until all the approvals are in place. An approval for a project can take anywhere from 18-24 months. In the last few years, approvals were taking time, so we were delaying new launches”.

Last year, PE firm Warburg Pincus and investment banker Goldman Sacchs had invested ₹1,800 crore and ₹900 crore, respectively, in Piramal’s realty business.

Piramal said that the company will be funding the investment through a mix of debt and equity.

On why the company had invested in a residential project when the commercial has been on upswing, Piramal said the company is looking at both commercial and residential. “We are also actively scouting for acquisitions be it land parcels or distressed assets,” he added.

Piramal said the company has also roped in several leading architect such as Hirsch Bedner Associates, BuroHappold, ESDA among others to give shape to its latest projects.