Tribeca inks pact for prime project in Mumbai’s Parel, secures HDFC Capital funding

Tribeca Developers, the largest developer of Trump branded projects in the world, has entered into an agreement with Mumbai-based real estate and infrastructure developer Tejukaya Group to develop a luxury residential project spread over 2.5-acre prime land parcel in south central Mumbai’s Parel locality.

This is one of the largest projects in South Mumbai to be developed under the state government’s Cluster Redevelopment Policy.

Real estate private equity firm HDFC Capital Advisors is backing the project with a financing of Rs 200 crore. This is the second investment the developer has secured from HDFC Capital under a Rs 500-crore residential housing platform that was by both the entities in 2019. Last year, HDFC Capital secured a complete exit from its first investment of Rs 135 crore made through this platform.

Tribeca, India’s largest luxury branded residential developer, is foraying in the country’s biggest and most expensive property market with this project. The development will encompass over 400 luxury residences with a total sale value of Rs 1,800 crore based on the current prices in the vicinity.

“Tribeca is known for working on iconic projects. We build Trump Towers, which are at the cutting edge of global luxury living. Due to this, our projects have always sold at a premium to market, all over India. After 10 years of developing landmark projects across the country, we are finally coming home to Mumbai,” said Kalpesh Mehta, the Founder of Tribeca.

Currently, Tribeca is developing over 6 million sq ft of branded residential projects in India with a sale value of Rs. 6,000 crores and has a development pipeline of over 4 million sq ft.According to Mehta, the company is currently in talks with a few other developers in key Indian cities to identify projects to be added to its pan-India development portfolio.Tribeca is known for its iconic developments such as Trump Towers in Gurugram and Kolkata, The Ark in Pune, which boasts the world’s largest rooftop, and Tribeca Highstreet, Pune’s largest high-street retail development.

As part of the partnership agreement, Tejukaya Group will be responsible for the land parcel, tenants, and approvals. The project land has been owned by the Tejukaya family for over 90 years and it has already secured approvals under Mumbai’s cluster redevelopment policy.

Total cost of the proposed project is estimated to be around Rs 1,000 crore and the joint entity is expected to finance it through equity, construction finance, and customer advances in addition to the funding support received from HDFC Capital Advisors.

The project is expected to be launched in the first quarter of the financial year 2024-25 and likely to be completed in four years. It will offer apartments with configurations of 2 and 3-bedrooms priced between Rs 3.5 crore and Rs 9.5 crore.

Mumbai property market has continued its record-setting spree to surpass all the benchmarks and scaling a new all-time high in 2023 with its best annual performance ever despite higher interest rates and rising property prices.

The country’s commercial capital has achieved a new peak in terms of both, registration of properties as well as state exchequer’s revenue collection through stamp duty charges.