Ashwin Sheth Group acquires 50% stake in luxury project in Mumbai

Singapore-based PAG commits funding of Rs 540 cr

Mumbai-based real estate developer Ashwin Sheth Group has acquired a 50 per cent stake in a luxury project with a gross development value (GDV) of ₹2,300 crore in Mumbai, for which Singapore-based alternative investment firm PAG has committed funding of ₹540 crore ($65 million).

 

PAG, with assets worth over $55 billion under management as of 30 September 2024, will fund the construction and development of the project, One Marina, located at Marine Lines — a prime Mumbai micro-market.

 

Ashwin Sheth Group has acquired equity from Vallabh Seth and Jitendra Sheth, who held ownership in the company, while also providing an exit to previous lender JC Flowers ARC — an asset reconstruction company with a managed assets under management (AUM) of ₹4,050 crore. The remaining stake is with the landowners.

 

The project was classified as a stressed asset. Valencia & Mishal Ventures, a firm linked to Vallabh and Jitendra, was earlier responsible for the project and had taken a loan from Yes Bank during 2018–19. However, the project stalled during the Covid-19 pandemic.

 

The company arrived at a settlement with the bank in 2019 or 2020 and, based on that agreement, repaid a substantial portion of the loan. In 2022, Yes Bank assigned a stressed asset loan portfolio of ₹48,000 crore to JC Flowers ARC, and this loan formed part of that portfolio.

 

“We received an offer in early January 2025. We provided an exit to the outgoing shareholders and acquired equity in the company. We paid them from our own equity. We secured the project because of our brand and equity strength in the market. As a developer, we brought PAG on board,” said Sunil Hotchandani, head of fundraising at Ashwin Sheth Group.

 

Of the ₹540 crore committed by PAG, “a very small amount” was used to give an exit to JC Flowers, Hotchandani said. “Some has been used to pay statutory dues, some to existing creditors to restart work, and the balance will be utilised for the construction and development of the project.”

 

Ashwin Sheth, chairman and managing director of Ashwin Sheth Group, said, “With this project, we aim to demonstrate our strategic focus on South Mumbai with multiple other upcoming projects to redefine the luxury/ultra-luxury segment.”

 

The RERA-saleable carpet area of the project is around 400,000 sq ft, while the constructible area exceeds 1 million sq ft. The project is expected to be completed in the next three years.

 

According to 99acres, average property rates in Marine Lines are around ₹62,600 per sq ft. However, prices have declined by 3.5 per cent over the past year.

 

The Ashwin Sheth Group is also exploring plans for an initial public offering (IPO). “The IPO is still 12 to 18 months away. First, we want to build a substantial portfolio to present in the IPO. We have identified merchant bankers and are in discussions with legal counsel,” Hotchandani said.

 

Currently, 7 million sq ft of the company’s projects are under construction, with a GDV of ₹24,000 crore. “This revenue will accrue to us over the next five to six years,” Hotchandani added.