IL&FS Investment Managers (IIML), the private equity arm of Infrastructure Leasing & Financial Services (IL&FS), has invested R40 crore, picking up a 50% stake in a $100-million project of Mumbai-based Narang Civilisation for developing a middle-income housing township project at Boisar.
IIML has $3.2 billion of assets under management, according to the fund’s website.
The proposed development, called Narang-Urbane-Housing-Forum, will be spread across 48 acre, with a total saleable area of close to 2 million sqft. CBRE Capital Markets acted as advisors to this transaction.
?The project will house 1,000 apartments and 280 row houses,” Amit Narang, promoter, Narang Civilisation told FE. The company is offering a rate of R3,000 per sqft rate for the row houses.
?Boisar has been seeing good development, which could be?second homes, plotted villas and middle-income group housing projects,? says Nikhil Bhatia, co-head (capital markets), CBRE South Asia, a global real estate consulting firm.
The area would witness around 4-5 million sqft of development, with another key project in the location being?Tata Group company Tata Housing’s affordable apartments project called New Haven and premium row housing project under New Haven Crest. Sales of homes in Mumbai city have been falling for over a year now, although, in the past 2-3 months, the fall has been arrested slightly.
While spiralling property prices led to waning consumers interest in residential property market, delays in government approvals for projects due to changes in development control rules curtailed the availability of homes further and home prices escalated due to lack of supply of homes. Also, fewer offerings in affordable segment led to further skewing of residential sales matrix in the city. In last financial year, only 45,000 units were absorbed in the Mumbai Metropolitan Region (MMR), which is well below the market average of 70,000 to 80,000 units annually, says a July 5 report of Knight Frank India, a global real estate consultancy.
Of the unsold inventory of 80,000 units in the Mumbai market, the report suggests the highest vacancy is in south and central Mumbai that offers products at the premium end of residential price band.