South Asian Real Estate or SARE, the UK-based private equity fund and a fully integrated investment and development company, is close to acquiring a 100-acre land parcel in Navi Mumbai and pump in about $350 million (Rs 1,500 crore) in the project.
SARE would hold 55% in the project while a private developer would hold the remaining 45%, said a person close to the development. The company would be developing an affordable residential complex on the land.
“SARE would be investing R75 crore in buying the land and the remaining portion proportional to the stake would come from the developer. The further amount for the development would be raised through a combination of debt and equity,” said a person close to the development.
The total cost of the land is estimated to be around R140 crore where the remaining amount would be spent by a private developer. An official spokesperson for SARE when contacted did not confirm or deny the development.
The group is already present in Ludhiana, Jalandhar and Amritsar, Himachal Pradesh and Haryana. This is the first investment of SARE in Maharashtra. According to an industry source, the group has a trend of making around four investments in a year with a total investment of anywhere around R100 crore in land.
The company has sold about 2,000 apartments in India and will increase this number to about 5,000 apartments within a couple of years.
{{/usCountry}}The company has sold about 2,000 apartments in India and will increase this number to about 5,000 apartments within a couple of years.
{{/usCountry}}SARE is the second major group to have invested in the peripheries of Mumbai for affordable housing. Tata Housing — that now goes by the name Subh Griha — already has two projects in Vasind and Boisar, both outside Mumbai.