Realty firm Shapoorji Pallonji Real Estate has tied up with property developer Nirmal Ltd to build two residential projects in Mumbai that would entail an investment of around Rs30 billion, reports say.

Under the agreement, Shapoorji would sell, market and look into the overall development of the project while Nirmal would continue to hold the land and be responsible for funding of the project.

Dharmesh Jain, Chairman and Managing Director Nirmal Ltd, told Mint that the projects would be funded through a mix of internal accruals and debt.

“We are in advanced discussion to raise some funds to finance the project. Over the 60-90 days we should able to tie up with institutions,” Jain said.

The two projects would spread across a total of 3 million sq ft each at Mulund, comprising around 4,000 units with prices ranging between Rs7.5 million to 15 million. Both the projects would be launched within the next six months, he said.

This is the fourth tie-up for Nirmal in the last one year. For Shapoorji Pallonji, the development management business comprises around one-fifth of the total portfolio of the company. The rest are either managed or owned by the company or under joint development with a partner firm.

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