23 Nov 2012, ET Bureau.
MUMBAI: Portman Holdings has picked up a significant minority stake in a Bangalore project of Tata Housing, the real estate arm of the Tata Group, for 65-83 crore.
The investment by the AtlantaBSE 0.38 %, US-based integrated real estate development, investment and management company, will be the first private equity investment in Tata Housing.
A senior executive at Portman said that the company, which has investments in two projects being developed by Kolte Patil Developers in Pune, will hold between 26% and 30% in Promont, a high-end residential project being developed by Tata Housing. The equity valuation of the project is 250 crore. Portman will invest anywhere between 65 crore and 83 crore, he said.
“Our strategy has been to invest in and develop residential projects with marquee developers in urban cities. We have worked with the Tata Group in the past, having partially designed and executed the Taj Welligton Mews service apartments in Mumbai. Promont fits our investment thesis well,” Rahul Anand, managing director of Portman Holdings India, told ET.
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.”
Portman has been investing proprietary money, but had plans to raise a $300-million fund from third party investors.
“We are looking at another transaction in Bangalore. There are 3-4 more deals in the pipeline. By the first half of 2013, we should be able to close six investments,” Anand said. Portman’s first investment in India is already three-year old and Anand is confident of achieving a 25% IRR (internal rate of return) on that.
Located at the highest altitude point of Bangalore, Promont is a high-end, gated, luxury community of terraced hillside residences with four apartment towers, villas and row houses.