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Goldman Sachs invests $150m in India's Piramal Realty

  • Holden Mann
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Goldman Sachs has invested $150 million in the Piramal Group's real estate development arm, Piramal Realty, less than a month after Warburg Pincus committed INR18 billion ($284 million) to the company.

The new funds, like the Warburg Pincus commitment, will be used to expand Piramal's current real estate portfolio and to buy new properties in and around its base of Mumbai. Currently the firm controls commercial and real estate projects totaling over 10 million square feet in the Mumbai area. It plans to begin construction on a major new mixed-use complex in the next few months.

In addition, the company said in a statement that it will launch a new buy-back project, Piramal Assurance. The project will offer home buyers a guarantee to buy back residential units from dissatisfied customers at a 5% discount to market value at any time until they take possession.

India's real estate market has been considered increasingly attractive following the government's pledge to make major investments into affordable housing over the next decade. Recent moves by investors in the sector include the launch of a real-estate focused non-banking financial company by KKR and GIC Private in January of this year and the formation of an affordable housing-focused joint venture in August by real estate giant Shapoorji Pallonji with Standard Chartered Private Equity and other investors.

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