JP Morgan has extended $30 million in financing to Parsvnath Developer's residential venture, La Tropicana, located in the bustling Civil Lines area of New Delhi. This agreement involves additional funding sourced through JP Morgan's local non-banking financial company (NBFC) operating in India. A portion of these funds has enabled Parsvnath to facilitate an exit for Red Fort Capital, which had invested Rs 115 crore back in 2009. Red Fort Capital has reportedly secured a 30 percent return on its investment from the project. Neither Ernst nor JP Morgan have provided comments regarding this particular deal.
In 2009, Parsvnath sold an 18 percent stake in its expansive 16.8-acre La Tropicana to private equity firm Red Fort Capital for Rs 90 crore, later that same year divesting an additional 4 percent for Rs 25 crore. Originally launched in 2008, this project featuring 400 apartments has faced significant delays, with revised completion estimates now suggesting a finish by 2013. Currently, the developer is marketing apartments within this project for Rs 14,000 per square foot, a notable increase from the initial launch price of Rs 8,000 per square foot. Just last year, Parsvnath also divested a 24.5% stake for Rs 120 crore to Red Fort Capital in an office development funded in part by land acquired from the Delhi Metro Rail Corporation, all under a build-operate-transfer agreement. Earlier this January, Sun-Apollo India Real Estate Fund made a Rs 100 crore investment for a 49.9 percent stake in another residential endeavor, Parsvnath Exotica, located in Ghaziabad, a city near Delhi.