MUMBAI – Real estate firm Parsvnath Developers Ltd has sold thirty percent stake in a Mumbai project to foreign funds for 1.86 billion rupees, the company said in an announcement on Thursday.
Shares in the company hit a high of 217.65 rupees on the news, and were trading 4.57 % higher at 216.30 rupees.
Parsvnath will sell 15 % stake each in the Kurla bus station redevelopment project to Euronext-listed Yatra Capital and Saffron India Real Estate Fund-I, both sponsored by Mauritius-based fund manager Saffron Asset Advisors.
Parsvnath said that Yatra and Saffron have picked up the stake at land-value basis. They will also proportionately fund all future development and construction activities for the project.
Future investment is estimated at two billion rupees and the project is to be completed in two and half years.
The deal will help unlock value of the property and help to begin a strong relationship with well-known foreign direct investment partners, Parsvnath said.
Jones Lang LaSalle Meghraj was the consultant for the deal. Foreign investors have rushed to invest in India’s growing real estate market for the last few years, attracted by simpler investment rules and rising property prices, which have gone up for the fifth straight year.