Parsvnath Developers is raising Rs 120 crore from Kotak Realty Fund for a new 100-acre integrated township project on Sohna Road in Gurgaon. Kotak Realty fund will get a 20% stake in the special purpose vehicle that will develop the yet unnamed project.
Parsvnath Developers has sold stakes in many of its residential and office projects to private equity funds in the past. Last year, JP Morgan had invested $30 million in Parsvnath’s residential project La Tropicana in Civil Lines area of north Delhi, which was used to give an exit to Red Fort Capital that had invested 115 crore in the project in 2009.
The project will be largely residential in nature with some commercial and retail developments, and will be launched in the next two months. “The land for the project has been aggregated by Parsvnath over many years and at approvals are being taken to launch the project,” said the person.
A senior executive at Parsvnath who did not want to be named confirmed that talks were on. A Kotak Realty Fund spokesperson declined to comment on the deal.
Red Fort Capital had earlier picked up 24.5% for Rs 120 crore in an office project Parsvnath is developing on land it had got from the Delhi Metro Rail Corporation in New Delhi. In January 2011, Sun-Apollo India Real Estate Fund invested 100 crore for a 49.9% stake in a residential project Parsvnath Exotica in Ghaziabad near Delhi.
The listed real estate player, which has a focus on the national capital region, is currently trying to reduce its debt, which stands at around Rs 1,300 crore. It recently put a 1.2-acre plot in the heart of Delhi, on Kasturba Gandhi Marg, on the block and is expecting to raise around 700 crore through the sale.
The plot is located opposite the American Centre on KG Marg, just outside the Lutyens Bungalow Zone. If the sale goes through, it will be the first new building to be built in the central business district of Connaught Place in Delhi after the Birla Tower that was built in early 2000.
