Tata Group's realty firm Tata Housing Development Company Thursday said US-based Portman Holdings has invested about Rs 65 crore in its luxury housing project in Bengaluru for a minority stake.
New Delhi: Tata Group's realty firm Tata Housing Development Company Thursday said US-based Portman Holdings has invested about Rs 65 crore in its luxury housing project in Bengaluru for a minority stake.
The company said this is the first private equity funding in its housing projects.
"Tata Housing has raised equity in Promont (project name), which is valued at Rs 240 crore, from Portman Holdings...For a minority stake in the project," Tata Housing, a wholly-owned subsidiary of Tata Sons, said in a statement.
Atlanta-based Portman Holdings is a real estate development, investment and management company. Yes Bank was the financial advisor on this transaction.
When contacted, Tata Housing spokesperson said: "We have raised about Rs 60-65 crore as private equity in our Bangalore project for a minority stake of about 25 percent. The project has been valued at Rs 240 crore."
The company would develop 400 units in the first phase and about 150 villas in the second phase. The price range of units is Rs 1.5-3 crore, while villas at over Rs 5 crore.
The total project cost is Rs 650 crore to be invested over the next five years, he added.
Commenting on the deal, Tata Housing Managing Director and CEO Brotin Banerjee said: "Portman Holdings clearly recognises the opportunity for long-term and sustained growth in the Indian housing market. Their investment represents a huge endorsement for The Promont as an outstanding project."
Tata Housing has 60 million sq ft under various stages of planning and execution and an additional 19 million sq ft in the pipeline. It is offering products ranging from Rs 5 lakh to Rs 14 crore.
The company has presence in Maharashtra, Gujarat, Goa, Gurgaon, Chandigarh, Bengaluru, Chennai, Kolkata and Bhubaneswar. It plans to expand presence across tier I and II cities. Tata Housing has also ventured into foreign markets such as Maldives and is actively exploring other markets including Sri Lanka and other South Asian countries.
Portman Holdings has raised and deployed over USD 6 billion and developed over 50 million sq ft of premium real estate globally. In India, the group has invested in about 3 million sq ft of property so far.