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Provenance Land to raise Rs1,000 crore from PE funds

LiveMint logoLiveMint 04-10-2017 Bidya Sapam

Mumbai: Provenance Land Pvt. Ltd, which has built Four Seasons and Hyatt Regency hotels in India, is planning to raise around Rs1,000 crore from private equity funds, a top company executive said.

Most of this money will be used to build a 600,000 sq. ft premium office tower at a two-acre plot at Worli in Mumbai and buy land for future mixed-use projects, Adarsh Jatia, managing director of Mumbai-based Provenance Land said in an interview.

The commercial real estate project will require up to Rs900 crore and will come up next to the Four Seasons Hotel and its ongoing uber luxury residential project Four Seasons Private Residences, Jatia said, adding this is the first time the company is entering commercial real estate. The company hopes to launch this project within six to eight months.

“The money that we will raise will be growth capital. We are looking for a long-term partner who has a good track record and good reputation. It could be for a particular project or it could be at an entity level. We are alright with parting some of the equity at the enterprise level,” he said.

On 3 August, Economic Times reported that Singapore’s state investor GIC is looking to buy 50% stake in Provenance Land. Jatia declined to name any investors the company is in discussions with.

Provenance Land, previously called Magus Estates and Hotels, has built five greenfield real estate projects in India including international hotel chain Hyatt Regency in Mumbai, Delhi and Kolkata.

In 2015, the company, in partnership with international hospitality chain Four Seasons Hotels and Resorts, launched Four Seasons Private Residences with an investment of Rs650 crore. The project, which is expected to be completed by 2020, has a total revenue potential of around Rs1,500 crore, he said, adding almost 50% of its total 35 units have already been sold.

“We have taken our ability to build marque luxury hotel assets into the residential space. This is the first residential project. We actually want to build luxury mixed use development which has components of hotels, residential, retail and commercial,” Jatia said. While the residential project is funded by internal accruals, the company would need an investment partner for starting its commercial project, he added.

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