PE funds flow to luxury villa projects
Luxury villa projects in the city are catching the attention of private-equity (PE) funds and non-banking financial institutions (NBFCs). The investors are also looking at exploring the option of backing luxury villa projects.
Reliance Capital Ltd funded Rs.60 crore in an ongoing villa project of Skylark Mansion Pvt. Ltd in Whitefield, while Azure Capital Advisors Pvt. Ltd along with a co-investor recently invested in a 20-acre land that will have 200 villas in Sarjapur Road, Bangalore.
Following the 2008-09 slowdown, most developers had resorted to smaller residential projects with preferably mid-priced apartments. But however, villa development has made a good comeback this year in some of the major cities in India.
The villa projects coming up now begin at the price of a high-end apartment, Rs.80 lakh to Rs.1 crore, and can go upward of Rs.10 crore. Bangalore’s Skylark Mansions is developing 114 villas priced at Rs.2-5 crore each.
Villa projects offer a great opportunity to PE funds because the cash flow generation is very strong in these, alleged Sunil Rohokale, group chief executive of ASK Group.
ASK group, Azure Capital, Bangalore, high-end apartment, Luxury villa projects, NBFC, non-banking financial institutions, PE funds, Private Equity, Reliance Capital Ltd, Residential projects, Skylark Mansion Pvt. Ltd, Villa, villas in Sarjapur, Whitefield
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