Landmark Exits Ghaziabad Project with Substantial Returns
New Delhi: The Dalmia Group’s private equity firm, Landmark, has exited a real estate project in the National Capital Region (NCR) after realizing a significant return on its investment. Over a period of six years, Landmark tripled its initial investment of Rs 111.26 crore. The firm recently divested its stake in the Wave Group's expansive 4,500-acre project located in Ghaziabad for a total of Rs 350 crore.
Impressive Returns Amidst Market Slowdown
Landmark’s impressive 3.16-fold return stands in stark contrast to the struggles faced by other private equity investors in the current sluggish market, many of whom are grappling to recoup their initial investments. This substantial return underscores Landmark's astute investment strategy.
Project Details and Phased Development
The Wave Group's Ghaziabad township project is planned in phases. Phase one comprises 20,000 housing units, of which 4,000 are ready for delivery. The project envisions providing a grand total of 75,000 units upon its final completion.
Landmark’s investment in the township dates back to 2007 and was structured as an equity investment. They have now been reimbursed for this through the buyback by Wave Group. Landmark has seen successful exits from two other investments earlier this year: one with the ATS Group, yielding 2.3 times the initial investment, and another with Shipra’s housing project, realizing a 2.1-fold return.
Landmark’s Investment Portfolio and Market Challenges
Landmark boasts a diverse investment portfolio, having partnered with prominent developers such as Ansals, Wave, Parsvnath, Forum, Pioneer, ATS, and Kumar Builders. The firm's investment strategy encompasses 25 projects involving equity and quasi-equity investments.
In the current real estate climate, developers are facing difficulties in boosting sales, which has led to an increase in unsold inventory levels. This market slowdown poses significant challenges to the real estate sector. Developers are increasingly seeking innovative strategies to navigate the current real estate dynamics.