MUMBAI – In a significant move, real estate firm Parsvnath Developers Ltd announced the sale of a thirty percent stake in a Mumbai project to foreign investment funds for 1.86 billion rupees on Thursday. Following this news, shares in the company surged, achieving a high of 217.65 rupees before trading at 216.30 rupees with a 4.57% increase.
Parsvnath is set to divest a 15% stake each in the ongoing redevelopment of the Kurla bus station to foreign entities: Euronext-listed Yatra Capital and Saffron India Real Estate Fund-I, both of which are backed by Saffron Asset Advisors, a fund manager located in Mauritius. The company disclosed that Yatra and Saffron have secured their stakes based on land-value assessments. Furthermore, these investors will support the financing for all subsequent development and construction operations related to the project, highlighting a strong collaborative approach.
Future investments for the project are projected to reach two billion rupees, with completion expected within two and a half years. This strategic deal is poised to unlock substantial value for the property and forge a robust partnership with well-regarded foreign direct investment investors, as explained by Parsvnath. Additionally, Jones Lang LaSalle Meghraj provided consultancy services for this transaction. Over recent years, foreign investors have increasingly flocked to India's expanding real estate sector, drawn by more straightforward investment regulations and a consistent rise in property prices, which have now escalated for five consecutive years.