Indiareit, the real estate private equity (PE) arm of the Piramal group, is learnt to be exiting two residential projects for around Rs. 200 crore.
According to the industry sources, of the two projects are based in Mumbai and Hyderabad. “We would be exiting two projects and ticking a healthy IRR (internal rate of return). We would be completing the deal by December end but I would not be able to give out any specifics about the projects,” said Ramesh T Jogani, MD and CEO, Indiareit.
Indiareit would be ticking around 16% average return. While the Mumbai project would have a IRR of 20%, the other project would fetch lower returns.
“The project in Mumbai is a residential project and a self liquidating one and so Indiareit would get returns via sale model. While the second project is an outright sale of equity to a third party,” said a person close to the development. Indiareit is also expected to exit at least one more project by the end of 2012.
Indiareit has Rs. 3,000 crore for the real estate portfolio. It has also launched two more funds — a rental yield fund and a slum rehabilitation fund worth Rs. 750 crore. Indiareit expects to close the fund within next six months.
In 2007, Indiareit had picked up a 75% stake in a special purpose vehicle (SPV) of Amsri Group, a Hyderabad based group for Rs. 70 crore. Sources said the fund would exit the mixed-use SPV at Bachpally, near Hyderabad airport.