Tata Housing raises about Rs 65 cr PE fund from US' Portman
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 per cent. 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.
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