Mumbai-based realty company Orbit Corporation is in talks to raise funds worth Rs 500-700 crore from private equity firms for its three residential projects, sources close to the development have told VCCircle. The company is also planning to bring in an international real estate developer to partner its luxury residential project.
According to the sources, the capital will be raised for the development of Kilachand property, Santacruz residential project and Napean Sea Road project at Darabsha Lane.
One of the sources said, “The company will start talking to PE funds and international developers for strategic tie-ups as it wants to reduce the size of investment in all these projects. In the past 8-9 months, the market was completely silent but with new regulations in place, things are set to improve.”
When contacted by VCCircle, the company spokesperson declined to comment.
Orbit is looking to sell its stake in the 121-year-old Kilachand property. Till now, the company has invested Rs 220 crore to acquire 50 per cent rights from Suresh and Chinubhai Kilachand, and it is now negotiating with other parties to buy out the rest of the stake. The total investment for the acquisition of the property could go up to Rs 500 crore.
The company is also in the process of acquiring the land for the Napean Sea Road residential project at Darabsha Lane, which is a 60,000 sq. ft. property.
Ram Shriya Yadav, CFO of Orbit Corp, said in a conference call on Friday, “In May-June, we may look for a strategic partner or partially exit the Santacruz project. We are also in the process of doing a fire sale where we will close transactions worth 20,000-25,000 sq. ft. in bulk.”
The company is also planning to close an acquisition at Kemps Corner before March-end. It is set to launch all the three projects during the first quarter of the next financial year.
Orbit has also done bulk sale and sold residential apartments for Rs 8,800 per sq. ft. in Andheri (Orbit Residency project). Earlier, the company was selling those apartments at Rs 10,500 per sq. ft. In the coming quarter, the company plans to undertake bulk sale at its Andheri and Lower Parel projects called Orbit Terraces for close to Rs 17,000-18,000 per sq. ft.