Peninsula Land Limited, a prominent real estate developer, secures INR 150 crore through Optionally Convertible Debentures from Arsenio Strategies Private Limited, an affiliate of Alpha Alternative Holdings Private Limited. This investment facilitates the formation of a real estate platform worth INR 765 crores, shared with Delta Corp Limited. AA Holdings contributes 59%, Delta Corp follows with 29%, and Peninsula Land contributes 12%. Peninsula Land will exclusively manage development, leveraging Delta Corp's expertise. The trio aims to capitalise on real estate opportunities, pooling resources to deliver successful projects. This collaboration marks a strategic move to unlock value and drive growth in the sector.
Peninsula Land Limited, a real-estate developer and part of the Ashok Piramal Group, recently disclosed the acquisition of INR 150 crore through Optionally Convertible Debentures which can be converted into equity shares of PLL. The investment comes from Arsenio Strategies Private Limited, which is affiliated with Alpha Alternative Holdings Private Limited - a multi asset class management firm.
Along with Alpha Alternative Holdings Private Limited and Delta Corp Limited, Peninsula Ltd is also planning to set up a real estate platform worth INR 765 crores. The platform will serve as the sole entity for both parties to engage in residential redevelopment within the Mumbai Metropolitan Region, as well as plotted development in and near the Mumbai Metropolitan Region, including Alibaug, Khopoli, Karjat, and Pune.
The division of funding between the three companies is as follows: AA Holdings is contributing up to INR 450 crores (59%) through their affiliates, Delta Corp is following it with INR 225 crores (29%), and Peninsula Land Ltd constitutes the remaining 12% with INR 90 crores. Peninsula Land Limited will be the exclusive development manager for all Platform Projects, and Delta Corp will be a strategic partner by bringing its real estate expertise and offerings. By pooling their resources and capabilities, the three firms aim to capitalise on emerging opportunities in the real estate market. This includes leveraging their combined experience in project development, market insights, and financial acumen to deliver successful and sustainable projects.
Rajeev Piramal, Vice Chairman and Managing Director of Peninsula Land Limited, sees the announcement as a pivotal moment in their growth strategy. The new platform will bring together expertise in project selection, funding, and development to unlock real estate value, particularly for companies with a proven track record and financial capacity. Their experience in delivering diverse projects and marketing properties from affordable to luxury segments, combined with this funding platform, will create value for stakeholders.
The previous November, Delta Corp made a deal with Peninsula Land to invest INR 100 crore in the publicly traded company by purchasing equity shares and compulsorily convertible debentures. Alongside their previous agreement, Peninsula Land and Delta Corp had also planned a joint venture with a total investment of INR 250 crores. Delta Corp was set to be the primary partner in this venture, with Peninsula Land taking on the role of development manager for the projects under this partnership.
Delta Corp stated in a regulatory filing that they are not planning to proceed with the previously considered joint venture with Peninsula Land. This decision is based on their investment in Peninsula Land last year and their involvement in a new platform that offers broader exposure with less concentration, all while keeping their financial commitment limited.
Their latest collaborative effort aims to harness the collective strengths and expertise of these industry leaders to drive growth and innovation in the real estate sector.
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