Oaktree Capital Management, a US-based global alternative investment management firm, has invested Rs 425 crore ($58 million) in a luxury residential project in central Mumbai.
The Economic Times reported earlier today that the investor has backed 25 South, a super-luxury residential project in Prabhadevi, central Mumbai. The project has three and four BHK units (bedroom, hall and kitchen) across three towers.
The report quoted Rushank Shah, director of 25 South, as saying, “The Oaktree investment and strong sales are a testament to the strength of the project’s location, design and execution and a validation of our vision to make 25 South the foremost luxury residential development in Mumbai.”
A part of the proceeds from the fundraise will be used to pay off debt owed to Indiabulls Housing Finance while the rest will go towards finishing construction.
The project is jointly owned by real estate developer Hubtown Group and real estate private equity-focused Rising Straits Capital. Wadhwa Group is the development manager for the project.
A spokesperson for Rising Straits confirmed the development to VCCircle.
A distressed assets investor, Oaktree is slowly ramping up its exposure in India’s real estate market. Recently, Gurugram developer M3M India Pvt. Ltd raised Rs 570 crore ($76 million) from Oaktree through non-convertible debentures across two tranches.
In a bid to take control of Dewan Housing Finance Corp Ltd, Oaktree has submitted the highest bid for DHFL even as Piramal Group and Adani Group have revised their offers.
The residential real estate ecosystem has seen a bunch of big-ticket transactions in the last few months. Recently, HDFC Capital, the real estate investment arm of HDFC Group, invested roughly Rs 150 crore in a township project of Ambuja Neotia Group in Kolkata.
Ansal Properties has set the ball rolling for a new leg of fundraise – up to Rs 100 crore -- after avoiding bankruptcy.
Affordable housing firm Janaadhar recently raised funding from Raell, a UK-based affordable housing impact investor, and existing investors.