ICICI Prudential Alternate Investments, the alternative investment arm of ICICI Prudential Asset Management Company, has struck a deal to invest Rs 210 crore ($22 million) in a redevelopment project of Mumbai-listed Raymond Realty Ltd.
The developer said in a regulatory filing its wholly owned subsidiary Ten X Realty West Ltd will raise the capital from ICICI Prudential Real Estate Development Fund, a scheme of ICICI Prudential Real Estate AIF that invests in residential projects.
Raymond Realty and the fund will jointly invest in Ten X Realty West to facilitate the redevelopment of one of its projects in the Mumbai Metropolitan Region, as per the filing. It did not identify the project or disclose other terms of the investment.
The investment will help the company improve capital efficiency and accelerate project timelines, said Harmohan Sahni, managing director and chief executive officer of Raymond Realty.
The investment comes as ICICI Prudential Alternate Investments advances fundraising for its residential real estate fund, which is focused on redevelopment opportunities in Mumbai.
VCCircle reported in August that the fund was targeting investments in residential redevelopment projects, a segment that has attracted growing interest from alternative investment managers seeking exposure to Mumbai’s established residential neighbourhoods.
Raymond Realty has been expanding its presence across the Mumbai Metropolitan Region while increasingly using joint development agreements (JDAs) to grow its portfolio without having to acquire all the underlying land.
The company said its overall portfolio has a gross development value (GDV) of approximately Rs 52,000 crore. Its JDA portfolio comprises eight projects with combined revenue potential of around Rs 27,000 crore, accounting for approximately 52% of its overall GDV.
The asset-light model enables the developer to work with landowners on development projects while allocating capital towards construction, execution and business expansion. External investment at the project level can further support this strategy by bringing in dedicated funding for specific developments.
Raymond Realty entered the real estate business in 2019 and has built a residential and commercial development portfolio across the MMR. Its residential brands include TenX, The Address by GS and Invictus by GS.
