Piramal Realty, the real estate development arm of the Piramal Group, is planning to make an investment of Rs 3,500 crore towards developing residential projects in the Mumbai Metropolitan Region (MMR).
The investment will be made over the next three years with significant focus on mid-market segment. The company is foraying into mid-market compact housing segment with a five acre development as part of its larger 32 acre township project Piramal Vaikunth in Thane, Maharashtra. Of the total planned investment of Rs 3,500 crore, the company will be investing Rs 1,500 crore to develop two million sq ft on this five acre plot.
The company will be offering one and 1.5 bedroom apartments with configurations of 350 sq ft-500 sq ft priced at Rs 60 lakh to Rs 80 lakh. The proposed investment will be supported through a mix of internal accruals, debt and some part of equity.
The company is planning to launch three more projects by July 2020, including projects at Mahim, Thane and a new tower at its Byculla development. Going forward the company will be making compact housing a part of all of its projects.
In December 2019, the company entered into a joint development agreement with Omkar Realtors & Developers for a 2.2 million sq ft residential project spread over four acre in Mumbai’s Mahim locality. It is planning to add total 10 million sq ft projects in 2020 to its existing 17 million sq ft ongoing development portfolio.
South Mumbai projects including Mahalaxmi and Byculla continue to contribute 50 percent of the company’s portfolio. The company will continue exploring new land parcels in the Mumbai Metropolitan Region (MMR) for residential and commercial developments.