Marvel Realtors Pune acquired 3-acre land parcel auctioned by the German government

Pune-based Marvel Realtors has raised about Rs 150 crore in a structured deal from Piramal Fund Management, an Ajay Piramal-led group company. Marvel will use the proceeds to construct a residential project.

Piramal Fund Management is the realty arm of Piramal Enterprises. The realty company, which acquired 3-acre land parcel auctioned by the German government a few weeks ago, can pay the lender about 15-17% interest with about five-six year maturity, two people familiar with the situation told ET.

“The deal has two projects -- Isola (at NIBM Road, Pune) and Fria (at Whagholi, Pune),” said Khushru Jijina, Managing Director, Piramal Finance, confirming the matter. “Both are mid-income residential projects in Pune with Phase I being completed and delivered. All approvals come in place For Phase II, and construction because of this phase has already begun.”

Ticket size per unit for the projects is less than Rs 90 lakh.

2-3 weeks ago, Marvel Realtors had acquired a 3-acre of land parcel auctioned by the Federal Republic of Germany for Rs 168 crore. The builders in Pune has paid Rs 56 crore per acre price for the land parcel at Pune's Boat Club Road, a leading location in the city.

“We shall use the proceeds for the construction of a residential project within Pune,” Vishwajeet Jhavar, CEO, Marvel Realtors, told ET. “We're also in discussion to boost further funds (from lenders) to support our constructions.”

There is no intermediary for the latest deal.

Marvel group is a preexisting client of the Piramal group company with more than four years of relationship. Prior to the deal, Piramal has been doing four transactions with the Marvel group for Rs 430 crore collectively.

Of these four, two transactions have been fully closed while an incomplete exit was achieved in among the deals which is fully closed by March 2017, the company said.

“Considering our relationship and past experience with the group, we directly structure and create transactions

With many banks turning averse to builder loans, such fund raising routes are increasingly becoming popular.

About per month ago, Piramal Fund Management extended Rs 425 crore as construction finance for realty developer Vatika Group's commercial project in Gurgaon. During once, it deployed Rs 700 crore collectively against two commercial properties in pune.