Tata Housing close to raising Rs 3,200 crore for luxury housing across top 5 cities
The deal will help Tata Housing to take up newer projects.
Oct 21, 2015
Source : ET
Tata Housing is in advanced-level talks with a few institutional investors


MUMBAI: Tata Housing is in advanced-level talks with a few institutional investors to raise Rs 3,200 crore for its upcoming premium and luxury residential projects across top five cities. 

The real estate developer is vetting final-stage proposals submitted by private equity funds Macquarie, JP Morgan, Standard Chartered and Morgan Stanley, a pension fund and a sovereign wealth fund. 

The capital pool could be raised from one fund or a consortium of investors, three people close to the development told ET. The 'investor list' would be put up for board approval over the next couple of weeks, a source said.

 "The deal will help Tata Housing to take up newer projects. The company has not made significant gains in its earlier projects due to sector-related problems," said an analyst tracking the real estate sector. 

"Since this is an equity relationship, the company will only need some (pro-real estate) sector tailwinds and timely completion of project to improve project yields," the analyst said. 

Tata Housing intends to construct premium and super-luxury residential enclaves in Mumbai, Chennai, Kolkata, Delhi and Bengaluru, priced between Rs 3 crore and Rs 10 crore at booking. 

The company, according to sources, may also use the incoming funds to construct super-luxury holiday homes at Kasauli, Lonavla and Goa. Tata Housing officials, when contacted, refused to comment. "Tata Housing may co-invest in this project; their participation could be just about 30 per cent; this means, about 70 per cent of project profits would go to the investor," the source close to the deal said. 

The Tata housing deal is in continuation of several large ticket (project-level) deals struck over the past few months. PE funds have invested close to $1.5 billion across 40 deals between January and July this year. 

Marquee institutional investors like GIC - Singapore, Canada Pension Plan Investment Board, Dutch pension fund asset manager APG Asset Management and sovereign wealth funds Qatar Investment Authority, among others, have made chunky projectspecific investments over the past one year. 

Analysts expect this trend to continue as they expect lower interest rates and buoyant markets to spur demand for prime real estate over the next couple of years. 

Tata Housing targets to complete the first phase of its Bengaluru project — The Promont — by early 2017. 

The company has three ongoing projects in Delhi, which it hopes to wrap up in two years. Projects in Mumbai and Goa would be ready for possession by 2019, a source in the company said. Besides this, Tata Value Housing, a group company, recently raised Rs 250 crore for investments in the affordable housing space. 


#Tata #Housing Luxury #ResidentialProjectshttp://www.gharabari.com/news-india-Tata-Housing-close-to-raising-Rs-3,200-crore-for-luxury-housing-across-top-5-cities-16462

Posted by Gharabari.com on Wednesday, October 21, 2015

Latest Realty News

Oct 21, 2015
BENGALURU: Investors Clinic, India's largest online real estate transactions and services platform, is in talks with large private equity funds and foreign banks to raise about $150 million (nearly Rs 975 crore) to fuel its growth.
Oct 21, 2015
Mumbai: Office space absorption during the July-September period increased marginally to 10.6 million sq ft compared to the previous quarter, with Gurgaon witnessing the highest leasing activity, says a survey.
Oct 20, 2015
Bengaluru: Sobha Limited, India’s premium real estate developer, has won two prestigious awards at the recently-held Realty Plus Conclave & Excellence Awards 2015 for the South region.
Oct 20, 2015
MUMBAI:It's a wager gone terribly wrong. Rich savvy investors, who invested in real estate debt funds expecting higher yields and capital protection, are spending sleepless nights as they have not been receiving regular interest payments over the past year. Some of these investments may go down the sewer unless there is an immediate uptick in property sales and a resultant revival in the real estate sector, wealth managers and analysts opine.
Oct 19, 2015
NEW DELHI: In a significant order, a trial court has said that buyers can claim damages from builders if the latter fails to hand over the property on time.
Oct 17, 2015
Imagine this: bang in the middle of one of India's largest slums, Dharavi, a skyscraper rises. It's no ordinary high-rise made of bricks and cement.
Oct 17, 2015
Mumbai: Prime Minister Narendra Modi's goal to put a roof over India's 1.3 billion people just got a lift.
Oct 15, 2015
CREDAI Bhopal organised a four-day long property expo "CREDAI GRIHA PRABESHAM - 2015" from 9th October to 12th October here at Vitthal Market Dussehara Maidan.
Oct 15, 2015
KOZHIKODE: Confederation of Real Estate Developers Association of India (Credai) observed a protest throughout the state on Tuesday against the harassment meted out to a builder in Thane by officials that led to his suicide.
Oct 15, 2015
NOIDA: Realty developers' body Credai's NCR chapter on Wednesday demanded industry status for real estate as they observed a strike in protest against the "difficulty in doing business".

Latest Realty News Of State

Realty Talk's