Piramal Realty to launch commercial project in Kurla
Piramal Realty, part of the $5 billion Piramal Group led by billionaire Ajay Piramal, on Tuesday said it will focus on six luxury residential projects in Mumbai, joining an intense battle for home buyers in competition with well-settled players such as Godrej Properties, Lodha Group, Shapoorji Pallonji and Tata Housing. It also launched Piramal Vaikunth at Thane near Mumbai, a mixed use complex designed by Chicago-based architectural firm HOK and spread over 32 acres, comprising two to three bedroom apartments, duplexes and townhouses.
The six projects are: three towers of 70 floors each in Byculla, set in 65 acres of land; 16.5 acres of commercial development in Kurla, a 20-storey tower in Worli Seaface, two towers of 60 storeys each in Mulund, and the Thane property which comprises 3 million square feet.
Piramal Realty has over 10 million square feet of development in Mumbai. The Group’s financial arm, Piramal Capital, has Rs 20,000 crore worth assets under management.
“We invested in quality ahead of the curve,” said Piramal, referring to the legacy of the group in setting some of the city’s landmark projects, including the Peninsula Corporate Park, Crossroads, CR2 at Nariman Point and Ashok Towers. “Four years of research has led us to create homes that reflect natural living and are inspired by biophilic design,” he added. Biophilic design is an innovative way of building homes that take into account the natural surroundings and greenery.
Stating that it is ideal that “all children are together” so that they can be equally attended to, Piramal said the company will follow a Mumbai focused strategy for now for its projects. As much as 70 per cent of the projects are in the residential space, since that space allowed companies to get capital and cash flows upfront, compared to commercial property.
“There is unsold property (in the Mumbai market), but it is not very significant,” he said when asked about the high inventory levels in the housing space as the realty sector battles a slowdown. “People still need quality.” Realty consultant Knight Frank recently said that new residential unit launches have fallen across all the top six cities of India during July-December 2014, with Mumbai witnessing the sharpest decrease, at 43 per cent. This was followed by Hyderabad, with a 30 per cent drop. The National Capital Region surpassed Mumbai in 2014 in terms of the highest number of new launches.
Piramal Realty, which has already received funds from private equity firms Warburg Pincus and Goldman Sachs, is looking for marque land parcels in Mumbai for development, Piramal said. Any projects would take upto 3.5 years to get completed, from the date of launch, he added.