Delhi-based realty firm Parsvnath Developers Ltd (PDL) is selling a 24.5% stake for Rs 120 crore in its upcoming office complex project in the city centre to Red Fort Capital. The PE firm is taking the stake in 'Red Fort Parsvnath Towers', a state of the art office complex coming up in New Delhi's Connaught Place.
Parsvnath has already executed a concession agreement with Delhi Metro Rail Corporation (DMRC) to deliver the project on built, operate and transfer (BOT) basis for Rs 99.5 crore. This concession has been assigned to Farhat Developers Pvt Ltd where Red Fort is picking up the stake. Larsen & Toubro (L&T) is likely to construct the project on a turnkey basis and has already been given a letter of intent.
'Red Fort Parsvnath Towers' is expected to be a grade A commercial complex located on a five-acre land, next to the Metropolitan Hotel. It will have 3000,000 sq. ft. of leaseable area with 800 basement parking space.
Red Fort last year invested in a residential project of Parsvnath in New Delhi. The developer raised a total of Rs 115 crore from Red Fort for 22% stake in ‘Parsvnath La Tropicana’, a group housing project of the company in north Delhi.
The share price of Parsvnath was trading at Rs 68 per unit, slightly up by 0.15% at 3 pm today. Earlier this month, Parsvnath raised Rs 270 crore through private placement of shares through a qualified institutional placement.
"New Delhi's CBD currently lacks sufficient grade A office supply, and Red Fort Parsvnath Towers will enable office end-users to upgrade into a modern commercial campus with ample parking and international amenities," said Parry Singh, managing director of Red Fort.
There have been 33 private equity deals with disclosed value of $1,021 million in the real estate sector so far this year, according to VCCEdge. This as compared 20 deals worth $544 million during the same period last year.
Most of the PE action in realty so far this year has been focused on the residential developments, though there is an appetite for well-conceived commercial projects with strong connectivity and good locations. In one of the largest PE deals, IL&FS Milestone Fund picked up a 74% stake for Rs 575 crore in HCC Real Estate's 247 Park, a corporate park located in Mumbai's Vikhroli (West).