The developer has also entered into a barter deal with a construction partner for the execution of the project, which has revenue potential of over Rs 2,250 crore.
The existing financing has also been restructured to ensure that all the funds are channelized for the construction of the project. Edelweiss Group that invested Rs 450 crore into this project has now been converted as a partner with a carved out 1.75 lakh sq ft constructed area being transferred to the institution.
“With this arrangement, investors of the project will receive back-ended exits based on the actual sales, which will be our responsibility along with the project’s execution. This will allow us to focus on execution without any financial burden during the project cycle,” Vipul Shah, Managing Director, Parinee Group, told ET.
The loans are restructured with moratorium and zero coupon and repayment is structured to provide a suitable exit from the sale of Inventory.
The total cost of the project is around Rs 1,250 crore, of which Rs 600 crore has already been incurred. While Rs 325 crore worth financial arrangement has been secured now, balance over Rs 300-crore cost will be supported through customer advances.
HNI investors and Edelweiss Group will be paid through future revenue of the project after using the same for achieving financial closure of the project, Shah said.
Spread over 2 acres, the project is planned with boutique and flexible office spaces ranging from 400 sq ft to over 2,200 sq ft area with base ticket size of Rs 1.50 crores. The project will cater to mid-size corporates, small and medium enterprises, and micro-small and medium enterprises, start-ups, professionals, family offices, and restaurants, etc.
All the necessary approvals for the project, which involves rehabilitation of 550 slum dwellers, have already been secured from the respective authorities including the MCGM and Slum Rehabilitation Authority (SRA). The developer is expected to hand over possession of additional 200 residential units for rehabilitation of government-project affected persons (PAP).
The proposed date of completion for the project is March 2026 and the construction work until the plinth level has already been completed by the developer.
The project was earlier approved under old development control regulations of 1991 and now has been revised as per the New development control and promotion regulations (DCPR) of 2034.
The Mumbai-based realty developer has so far completed over 4 million sq ft of commercial and residential projects over the last few years including a commercial project in Bandra-Kurla Complex. Currently, the company is developing projects totalling 2.5 million sq ft in various locations of Mumbai including Worli, Khar West, Andheri West, Juhu, Kandivali West and Borivali West.