Parsvnath sells 24.5% stake in office project for Rs 120 cr

Realty firm Parsvnath Developers today said it has raised Rs 120 crore by selling 24.5 per cent stake in its office complex project at Connaught Place, in the national capital, to private equity firm Red Fort Capital.

In a filing to the Bombay Stock Exchange, Parsvnath said it has partnered with Red Fort Capital to jointly develop the office complex, spread over five acres.

The project 'Red Fort Parsvnath Towers', with a leasable area of three lakh sq ft, would be developed by its subsidiary Farhat Developers Pvt Ltd (FDPL).
    
"The entities controlled by Red Fort Capital have acquired 24.5 equity stake in FDPL by inducting Rs 120 crore as foreign direct investment," the filing said.
    
When contacted, Parsvnath Chairman Pradeep Jain said the total project cost of the office complex is Rs 200 crore that includes Rs 99.5 crore upfront payment to the Delhi Metro Rail Corporation (DMRC).
    
Parsvnath has executed a concession agreement with DMRC to deliver the project on a BOT (build-operate-transfer) basis. The construction will be done by L&T.
    
Earlier this month, Parsvnath Developers had announced that it has raised Rs 270 crore through private placement of shares with institutional investors to fund ongoing projects.
    
Last year too, the company had raised Rs 168 crore through the QIP route and Rs 190 crore through stake sale at project level.
    
Parsvnath had raised Rs 115 crore by divesting a 22 per cent stake in a housing project in Delhi to Red Fort Capital. In another PE deal, the company had raised Rs 75 crore by selling a stake in a Gurgaon housing project to Sun Apollo.
    
The company has a land bank of 194 million sq ft, of which it is undertaking construction of 80 million sq ft on fast track basis.