Ashok Piramal Group’s realty development company Peninsula Land, Jaydev Mody-led Delta Corp, and multi-asset class asset management firm Alpha Alternatives Fund Advisors LLP (AA Group) will be setting up a Rs 765-crore real estate development platform.
This joint entity will undertake residential redevelopment in the Mumbai Metropolitan Region and plotted development in and around the Mumbai region, Alibaug, Khopoli, Karjat and Pune.
AA Group will be investing up to Rs 450 crore in the platform through its affiliates including Arsenio Strategies and any of its managed funds. Peninsula Land and Delta Corp will invest up to Rs 225 crores and Rs 90 crores, respectively. Peninsula Land will also provide development management services to the platform.
Delta Corp will be a strategic partner in the Platform, and bring its real estate expertise to the platform, including for selection and development of projects.
“This new platform will leverage the combined expertise of all parties in project selection, funding and development to unlock the value that exists in real estate today, especially for companies that have a track record of project delivery and the necessary financial resources to execute them in a timely manner,” said Rajeev Piramal, VC & MD, Peninsula Land.
Separately, Peninsula Land has raised Rs 150 crore through optionally convertible debentures from AA Group’s Arsenio Strategies.
In November, Delta Corp had entered into an agreement with Peninsula Land to invest Rs 100 crore in the listed company through equity shares and compulsorily convertible debentures (CCDs).
In addition to this, Peninsula Land and Delta Corp had also proposed a joint venture with a combined investment of Rs 250 crore. Delta Corp was to be the majority partner in this proposed joint venture and Peninsula Land was expected to be the development manager for projects to be undertaken through this joint venture.
“Given that this platform ensures larger and less concentrated exposure while limiting our financial contribution and is being undertaken in conjunction with Peninsula Land (in furtherance of the investment we made in them last year), we do not intend to pursue the joint venture earlier contemplated with Peninsula Land,” Delta Corp said in a regulatory filing.
The latest investment in the platform will be part of the company’s ongoing investments out of its internal accruals. The company said its focus will remain on core businesses of gaming and allied hospitality with majority of its capex and investments being made to expand the core business.
