Ashwin Sheth Group buys 50% stake, PAG pours ₹540 cr in posh south Mumbai tower
Bengaluru: Ashwin Sheth Group has acquired a 50% stake in a stalled 74-storey luxury residential project in south Mumbai, giving existing lender J.C. Flowers Asset Reconstruction Pvt. Ltd an exit, officials of the real estate developer said, declining to reveal the size of the transaction.
In a two-way strategic deal, Asia-focused Investment firm PAG has also committed ₹540 crore of credit finance to the project 'One Marina', located in Marine Lines. The funds will be used for construction of the project, with a gross development value of ₹2,300 crore.
Mumbai-based Ashwin Sheth Group acquired the stake from Jitendra Sheth and Vallabh Sheth, the promoters of real estate firm Sheth Creators. The remaining 50% stake remains with the landowner of the project.
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Sheth Creators had launched 'One Marina' back in 2021, and around ₹300 crore of debt was raised from Yes Bank for the project. However, the project defaulted on the loan, and the development got stuck. Subsequently, after Yes Bank offloaded its stressed loans portfolio to the tune of ₹48,000 crore to J.C Flowers ARC, the loan against 'One Marine' was also assigned to the latter.
'We aim to make 'One Marina' one of the most premium residential addresses in south Mumbai. It is a one million sq ft project, with 315 units including apartments, duplexes and penthouses. We are planning to relaunch the project," Ashwin Sheth, chairman and managing director of the eponymous Ashwin Sheth Group told Mint in an interview.
Also read: Global firms Hines, Sumitomo partner for Mumbai condominium project
Ashwin Sheth Group currently has 7 million sq. ft of under-construction projects. Sheth has helmed a number of luxury projects in Mumbai, including 'Beaumonde' in Prabhadevi.
Sunil Hotchandani, head-fund-raising at Ashwin Sheth Group, said, 'With PAG's financial support and our development track record, 'One Marina' is well-positioned for a successful turnaround."
Since 2018, PAG has made over $1.3 billion in private credit investments in India.
A PAG spokesperson declined to comment.
Luxury home sales in Mumbai, the country's most valuable property market and other cities such as Gurugram have continued to attract homebuyers and investors alike.
Also read: Finance giants in Mumbai are coming home—to Worli
'Marina Lines as a micromarket gained further momentum after Prestige Group launched its 'Ocean Towers' project last year, which saw good sales. The luxury market continues to do well. The 'One Marina' project has a full ocean view, and now that the project has got financial closure, it should be developed quickly," said Anuj Puri, chairman and founder, Anarock Group, a property advisory.
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