Yatra Capital Limited, the first Euronext quoted company investing in Indian real estate, announces its 13th investment. It has committed €16.75 million for a commercial development in Jarul Promoters & Developers Pvt. Ltd., for a 15% stake in the joint venture company to develop approximately 30,820 m² of land, abutting Mumbai's premier business destination Bandra Kurla Complex (BKC).
In the last five years, BKC has emerged as a preferred alternative to Nariman Point, the city's traditional central business district. The non-availability of land in South and Central Mumbai led to a spurt in property prices in the area, leading to the development of BKC as an alternate business destination.
Major corporations already present at BKC include ICICI Bank, National Stock Exchange (NSE), Securities and Exchange Board of India (SEBI), State Bank of India, Asian Heart Institute, Citigroup and Wockhardt.
Over the next few quarters, several large commercial developments are expected in the area, according to Jones Lang Lasalle Meghraj's ("JLLM") Asia-Pac report for Q4 2007. The new developments have witnessed significant letting interest from both Indian and multinational corporations. Vacancy rates in the area have been estimated at 1.1% during 2007 by JLLM's Asia-Pacific report for Q4 2007.
Yatra's joint venture partner for the project is a Delhi based developer with a pan-India presence, Parsvnath Developers Limited. The company has over 17 years experience in developing real estate and has a presence in 48 cities and 17 states across India. It has till date completed 12 residential, 12 commercial and seven metromall projects in Delhi at metro rail stations.
Parsvnath is listed on both of India's major stock exchanges, the National Stock Exchange and the Bombay Stock Exchange.
The company currently has 76.43 million ft² under development out of total developable area of 209 million ft², with 22 residential, 16 commercial, 10 integrated townships and five hotels coming up across India. The company is developing five more projects for Delhi Metro Rail Corporation.
The joint venture project is being developed on a parcel of land owned by the government-owned Brihanmumbai Electric Supply and Transport ("BEST"). It is located on the site of the Kurla bus depot at the intersection of two arterial roads linking Mumbai's central and western suburbs.
The entire site would be redeveloped by the joint venture company, Jarul, and a part of the development would be handed over to BEST. The remaining portion would be the proposed office development which will be leased out.
Commenting on the transaction, Sir Nigel Broomfield, Chairman of Yatra Capital Limited, said, "We are delighted to be partnering a reputed developer such as Parsvnath for our maiden project in Mumbai. The investment is a significant addition to Yatra's investment portfolio."
Mr. Ajoy Veer Kapoor, Director, Saffron Capital Advisors, added, "As Yatra ventures into new cities, we endeavour to create strategic alliances with leading developers. We are happy to enter the Mumbai market in partnership with Parsvnath."