Goldman Sachs to invest Rs 900 crore for a minority stake in Piramal Realty

US investment bank Goldman Sachs is going to invest $150 million (Rs 900 crore) for a minority stake in Piramal Realty, a real estate development arm of the Piramal Group.

The money generated will be used to expand Piramal Realty's current real estate portfolio and to buy properties in and around Mumbai, reported the Economic Times.

Goldman Sachs has helped develop some of the world's finest buildings, such as 15 Central Park West in New York and 16 Colleyers Quay in Singapore. It is one of the leading investors in real estate sector in the world.

“Its (Goldman Sachs) experience and expertise will further inspire us to build world-class developments in India and achieve the highest standards of design, technology, quality, execution and customer service," Anand Piramal, executive director at Piramal Group, said in a statement on Monday.

The real estate firm will also launch a buy back guarantee scheme called 'Piramal Assurance' under which it will offer to buy back any residential unit from a customer at a 5% discount to the market value until possession should a buyer not be satisfied.

"For most customers, buying a home is their single largest and most important investment. Our 'Assurance' will reduce the financial risk of purchase and provide peace of mind for customers, who will know that their investment is safe and liquid," said Piramal.

Ankur Sahu, co-head of private equity at Goldman Sachs in Asia has confirmed the development, saying the bank is excited to work with the Piramal Group.

"This investment is consistent with our ongoing strategy of partnering with India's leading entrepreneurs to invest in sectors critical to the country's development. The government's focus on simplifying regulation and boosting economic growth will kick start investment and consumption," Sahu said.

Last month, private equity giant Warburg Pincus had picked up a minority stake in Piramal Realty for Rs 1,800 crore.

(Image: Reuters)