Warburg Pincus To Invest INR 1800cr In Piramal Realty
Warburg Pincus to invest INR 1800cr in Piramal Realty; This will be amongst the largest FDI in the Real Estate sector in India.
Piramal Realty, the real estate development arm of Piramal Group, today announced that an affiliate of Warburg Pincus, a leading global private equity firm focused on growth investing, will invest INR 1800 crore (US$284 million) for a minority stake in the company.
Founded in 2011, Piramal Realty is a Mumbai based developer that has over 10 million square feet under development in prime areas of Byculla, Thane, Worli, BKC and Mulund.
Commenting on the transaction, Anand Piramal, Piramal Group’s Executive Director, said “We are proud to partner with one of the world’s leading private equity firms to build India’s most admired real estate company, admired not just for its scale and profitability, but also for its impact on the lives of its customers and the progress of our country.” The capital raised will be used to expand Piramal Realty’s portfolio and acquire marquee land parcels in and around Mumbai.
Niten Malhan, Co-Head of India, Warburg Pincus stated “Warburg Pincus invests in companies with high growth potential and believes that Piramal Realty is best positioned to achieve leadership in one of the world’s most attractive real estate markets. Piramal Group’s strengths such as its strong values, its track record of creating long term value for stakeholders, its trusted brand, its ability to recruit great people, its emphasis on customer centricity and its reputation as strong deal makers are some of the reasons why the firm chose to invest in Piramal Realty.“
Ajay Piramal, Chairman, Piramal Group added, “We are delighted to partner with Warburg Pincus for a second time: the first was when they invested in Piramal Healthcare in 1997, and now with Piramal Realty. Warburg Pincus’ investment and expertise will raise the level of real estate in India to international standards, as it has done in other industries such as telecom, financial services and pharmaceuticals.”
Piramal Realty aspires to be the gold standard in design, quality, safety and customer centricity in both residential and commercial real estate. It works with some of the world’s leading architectural practices such as KPF, Fosters, SOM and Make and leading contractors such as L&T and Eversendai. Its board includes Deepak Parekh (Chairman, HDFC), Nitin Nohria (Dean, Harvard Business School), Robert Booth (former CEO, EMAAR) and Subbu Narayanswamy (Director, Real Estate/Infrastructure practice, McKinsey). Piramal Realty’s developments while being cutting edge and contemporary, will also embrace a more intuitive definition of luxury, which celebrates nature, greenery, space, light, ventilation, art, culture and community living.