Shapoorji Pallonji Real Estate has tied up with Nirmal for the development of two premium real estate projects in Mumbai. Nirmal has already executed two DMAs (Development Management Agreements) with Shapoorji Pallonji Real Estate for jointly building more than 3 million sq. ft. across two projects in Mulund. Both these projects, namely City of Joy and Olympia should garner revenues close to Rs. 5, 000 crore over a period of 6 years as per reports.
Nirmal will be taking responsibility for the permissions and land at both these projects and Shapoorji Pallonji Real Estate will be handling the development, marketing and execution of these projects. These projects will have joint branding. As per reports, several real estate companies are now more open towards considering models for joint development. Nirmal which was earlier called Nirmal Lifestyle, will also be targeting the development of a commercial project at Mulund itself. These two projects will have a pact of revenue sharing between the company and Shapoorji Pallonji Real Estate.
Nirmal Ventures, the newly established division of Nirmal that has been plagued by debt, has enabled this new pact with Shapoorji Pallonji. Nirmal Ventures had previously entered into a joint development agreement with L&T Realty for developing an integrated residential project in Mulund. Piramal Realty had previously purchased a land parcel spanning 3.2 acres at Mulund from Nirmal Lifestyle for a whopping Rs. 153 crore. This plot is located right next to the Piramal Realty residential project in the area.
Last September, Nirmal also entered into a tie-up with Godrej Properties for developing a premium residential project on a land parcel spanning 14 acres in Thane. With these strategic associations, Nirmal has managed to raise around Rs. 1, 000 crore till date.