Aditya Birla Capital extends debt to redevelopment project near Mumbai's BKC

economictimes.indiatimes.com:

Aditya Birla Capital Capital, has extended debt worth Rs 40 crore to Agami Realty’s premium residential project involving redevelopment of a housing society in Kala Nagar near Mumbai’s business district Bandra-Kurla Complex (BKC). The project to be developed on the land parcel spread over a quarter of an acre is estimated to have a development potential of about 1 lakh sq ft and a free-sale component of about 45,000 sq ft.

The project is expected to translate into a revenue potential of over Rs 225 crore based on the prevailing pricing trends in the micro-market. “We value the confidence expressed by Aditya Birla Capital in us, this funding has enabled us to achieve a financial closure for the project and will empower us to deliver the project well ahead of its scheduled timelines,” Prashant Khandelwal, CEO — Agami Realty.

Last month, Aditya Birla Capital raised Rs 3,000 crores through a combination of a Qualified Institutional Placement (QIP). Apart from promoter and promoter group entities Grasim Industries and Surya Kiran Investments, the issue received robust response from foreign portfolio investors, sovereign wealth funds and domestic institutional investors.

Real estate projects involving redevelopment and rehabilitation are the mainstay of Mumbai’s property market as the land-starved city has few vacant land parcels. According to Khandelwal, society redevelopment is the most excellent opportunity in Mumbai today and the company will continue to evaluate more such opportunities to grow our portfolio in Mumbai.

ET's email query to Aditya Birla Capital remained unanswered until the time of going to press. The project will be a boutique residential development with a 22 storied edifice being designed by architect