Warburg Pincus makes Rs 600 crore exit from joint realty development platform with Runwal
private equity major Warburg Pincus has made an exit worth over Rs 600 crore from its joint platform with realty developer Runwal Group for the development of retail-led, mixed-use properties in India, said persons with direct knowledge of the matter. Runwal took over the stake.
In 2019, in one of the largest real-estate investment platform transactions in India, an affiliate of the New York-based institutional investor had entered into the alliance to develop shopping malls in key cities with a sizeable population and growing disposable incomes.
“Warburg Pincus exited the joint retail development platform successfully with superior returns last week.
The alliance partner Runwal Group has bought them out to provide them with a 100% exit,” said one of the persons mentioned above.
The private equity firm had entered the joint venture with Runwal Group by infusing equity capital of Rs 250 crore and has received an exit worth Rs 600 crore.
The joint platform had commenced work on two projects including a retail and office project spread over 1.2 million sq ft in Mumbai and a mixed-use project with around 5 million sq ft development potential in PCMC, Pune.
Both these projects are currently under construction. With Warburg Pincus’ exit, the Runwal Group is expected to take these projects further independently.
As part of the joint venture arrangement, the affiliate of Warburg Pincus and Runwal Developers each held a 50% stake in the platform.
