Chennai, Aug 17 (IANS) Mumbai-based Piramal Realty on Monday said investment bank Goldman Sachs will invest Rs.900 crore in the company for an undisclosed minority stake and take a board seat.
This is the second major investment that Piramal Realty has secured within a month.
In July, the company got an investment of Rs.1,800 crore from Warburg Pincus.
“Goldman Sachs will have one representation while Warburg Pincus will have two on Piramal Realty’s board. Piramal Realty is a privately held company,” the company spokesperson told IANS over phone from Mumbai.
The funds will be used to expand the company’s current real estate portfolio and acquire prime properties in and around Mumbai.
According to the official, the company has around 10 million sq. ft. under development in Mumbai.
“As one of the leading investors in global real estate, Goldman Sachs has helped develop some of the world’s finest buildings, such as 15 Central Park West in New York and 16 Colleyers Quay in Singapore,” Anand Piramal, executive director was quoted as saying in the statement.
In tandem with this investment, Piramal Realty announced plans to launch a first-of-its-kind buy-back guarantee called Piramal Assurance.
Under this, the company will offer to buy-back any residential unit from a customer at a five percent discount to the market value until possession should a buyer not be satisfied.
In the next few months, Piramal Realty will launch Piramal Vaikunth in Thane, a mixed-use complex spread over 34 acres.
According to the statement, Goldman Sachs is active in investing across different sectors of the Indian economy. Since 2006, the firm has deployed more than $2.5 billion in the country.
Globally, Goldman Sachs is one of the largest real estate investors in the world and has invested approximately $43 billion in the sector.