Red Fort picks 18% in Parsvnath subsidiary

International real estate fund Red Fort Capital has picked up 18% stake in a premium luxury residential project by Parsvnath Landmark Developers Pvt Ltd (PLDPL) - a wholly owned subsidiary of Parsvnath Developers Ltd (PDL). Red Fort will invest Rs 90 crore for this equity stake in the residential project.

Parry Singh, managing partner at Red Fort Capital in an official media statement said, “Our investment demonstrates our continued commitment to provide execution capital for residential projects in prime locations in India's major metro markets.”

Christened Parsvnath La Tropicana, the development is spread over an area of 16.84 acres (68,149 sq. mt.) in Khyberpass, Civil Lines, Delhi. The total cost of the project is pegged at Rs 700 crore including land and construction costs. PLDPL has already crossed the excavation stage for the project and expects it to complete in three years with projected revenue of about Rs 1,300 crore.

Launched in 2006, PLDPL claims to have already sold 60% of the saleable area of approximately 1.9 million square foot. It will offer 3, 4, and 5 bedroom units and also villas and penthouses. The per square foot (PSF) price at the time of launch was Rs 6,000 which has now jumped 66% and is currently pegged at Rs 10,000 PSF.