Piramal Fund is ready to invest in Mumbai's Dhobi Ghat project with Rs.200 cr

Q: Yes, it is expected that the funds will be used for the rehabilitation process and to pay for project clearances and approvals.

Shantanu Kumar, Mumbai

24th August 2015

Real estate News in Mumbai

slum redevelopment project

omkar realtors and developers pvt. ltd.

dhobi ghat project of mumbai

piramal fund management pvt. ltd

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Replies (3)

Yes, while Piramal Fund will continue to invest through the PMS route, it will go on to raise its next domestic fund in the coming months. Doing transactions through the PMS structure allows a fund house to tap an additional source of HNI (high networth individual) pool, who can co-invest on a project-to-project basis.

Jerome Fernandez, Mumbai

24th August 2015

Comment

Why are investors looking at the co-invest route more favorably compared with blind pool one? What is PMS?

Rajiv Bajaj, Pune

24th August 2015

Hi Rajiv,
Portfolio Management Services is a collective pool of investments handled by a portfolio manager. In an AIF or alternate investment fund structure in real estate, investments below Rs.1 crore from individual investors are not allowed. A number of real estate funds are either being raised or are deploying capital under the AIF norms, where the fund manager has the final say on the kind of project investments that are made.

Kunal,

24th August 2015

Yes, and work on the project is slated to start early next 2016. After Dhobi Ghat, they have lined up 2 more projects where they want to invest in a similar manner. The company has undertaken the Dhobi Ghat project almost a decade after an agreement was signed between another developer and the Slum Redevelopment Authority. After getting the majority approval of slum dwellers, Omkar Realtors now plans to launch the project early next year.

Anirudh Patel, Mumbai

24th August 2015

Comment

Hi Anirudh,
The Bombay High Court last year had ordered the Maharashtra Government to call for fresh bids for the project, after the residents rejected plans by another Mumbai based developer. The new investment from Piramal comes even as the company recently announced its exit from Omkar Realtor and Developers’ residential project in Mumbai.

Ravindra Singh,

24th August 2015

Yes, Omkar Realty are in the process to relocate the first 950 people to transit accommodation. They are planning a residential development on the site, and once the project is launched, it should take about 3 yrs. for construction.

Anirudh Patel, Mumbai

24th August 2015

It's true. Piramal Fund will invest equity capital at an early stage of the Dhobi Ghat project, a century-old, open-air laundry over 7 acres of prime land in south Mumbai's Mahalaxmi that houses about 7000 slum dwellers. The capital will be used for the rehabilitation process and to pay for project clearances and approvals.

Kunal,

24th August 2015

Comment

Earlier, company has finished positioning its latest Indiareit Domestic Scheme-V, a Rs.1000 crore residential fund. Piramal Fund is now catching the Portfolio Management Services route to raise capital. It is doing single transactions under a discretionary PMS route in the domestic market today, and approaching its large pool of high-networth investors on a project-by-project basis.

Ravindra Singh,

24th August 2015

The project aims to rehabilitate around 1116 families along with 50 commercial tenants. Under the redevelopment plan, Omkar will rehabilitate the current dwellers and develop a commercial property in its place. The heritage washing area will be retained as it is.

Kunal,

24th August 2015