Source: The Economic Times India
MUMBAI: Piramal Realty, the real estate development arm of the Piramal Group, is planning to invest over Rs 3,500 crore to develop residential projects in Mumbai Metropolitan Region (MMR) over the next 3 years with significant focus on mid-market segment, said a top company official.The company, which counts Goldman Sachs and Warburg Pincus as its investors, is foraying into mid-market compact housing segment with a 5-acre development as part of its larger 32 acre township project Piramal Vaikunth in Thane.Of the total planned investment of Rs 3,500 crore, the company will be investing Rs 1,500 crore to develop 2 million sq ft on this 5-acre plot. The company will be offering 1 and 1.5 bedroom apartments with configurations of 350-500 sq ft priced at Rs 60 lakh to Rs 80 lakh.“The combination of right product, location and ticket size ensures good response and our recent launches in South Mumbai have reinforce this. Luxury will do well but this is also a good segment to be in and right now the market prefers compact units,” Anand Piramal, Executive Director, Piramal Group told ET. “The proposed investment will be supported through a mix of internal accruals, debt and some part of equity.”The company is planning to launch 3 more projects by July–including projects at Mahim, Thane and a new tower at its Mahalaxmi development–and will be making compact housing a part of all of its projects hereon.