For Panvel project, Wahwa Group raised Rs. 200 crore from Piramal Fund Management Pvt Ltd

Q: Is it true that the Mumbai-based real estate firm has raised Rs. 200 core from Piramal Fund Management Pvt. Ltd. for its 500 acres township at Panvel in Navi Mumbai?

Joydeep D,

6th July 2015

Real estate News in Navi Mumbai

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navi mumbai real estate

wadhwa group

piramal fund management

residential project in panvel

vijay wadhwa

gulf finance house

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Replies (2)

Hi,
Township developments, which are long time development and capital-intensive projects, have had a mixed run in the country so far, with some handing over the project on time while others delayed and cash-starved.
Wadhwa Group, which builds high-end apartments and office buildings. It is an attempt to replace high-cost debt with cheaper capital. They are also buying some additional land for the Panvel project.

Mansoor Bithal, Mumbai

6th July 2015

Comment

Hi Mansoor,
Now-a-days builders are raising money actively and many of then need to raise for survival in the market. Like, they are using new debt for pay off old debt. They are raising money from Private Equity Funds and NBFCs to refinance earlier loans and for growth capital. For those projects which are stuck for some reason and are unable to generate enough cash flows, realty firms are pushed to raise fresh debt.

Vasanth,

6th July 2015

Earlier, this Group has raised funding from investors such as Kohlberg Kravis Roberts and Co. Lp (KKR), Standard Chartered Bank and Indiabulls Financial Services Ltd, among others. There are too many lenders in the market, and while there are many opportunities for funding, not all of them are suitable for sustainable lenders.

Mansoor Bithal, Mumbai

6th July 2015

Yes, it is absolutely right. And the fund will be used to build 500-acre township at Panvel in Navi Mumbai and will use some of the money to buy additional land for the yet-to-be launched project and some to give an exit to earlier lender IIFL Group.

Dharmaja Patel, Mumbai

6th July 2015

Comment

Hi Dharmaja,
In 2011, Wadhwa Group signed an agreement with Gulf Finance House for developing the Panvel land owned by the Bahrain-based investment bank. After developing the entire project, Wadhwa Group will give a portion of the built-up or developed area to Gulf Finance House, in addition to a partly payment already made to the Bahrain bank.

Vasanth,

6th July 2015