Pradeep Jain, Chairman of Parsvnath Developers Ltd. Parsvnath has signed an agreement with two of Saffron Group’s funds, Yatra Capital and Saffron India Real Estate Fund for development of projects.

Excerpts from CNBC-TV18’s exclusive interview with Pradeep Jain:

Q: Could you lay out the plans with these two funds, how much money are you looking to raise and where exactly would you be deploying that money?

A: We have already entered into the agreement with Saffron and Yatra, related to the development of a specific project in Kurla near Bandra-Kurla complex on a land area of about 30,820 sq meter to develop and remodel  a bus depot along with the staff housing for BEST and the commercial development.

We form an SPV company with the fund to develop this Kurla bus depot and the funds hold 30% equity into the SPV on a land valuation of Rs 620 crore. The fund contributes to about Rs 186 crore that’s 30% of the equity.  

Q: What sort of revenues are you looking at from this particular project at Bandra-Kurla and when will the money actually come onto your books?

A: This project will be completed in two and a half years from now and we will have to leave the model out the complex. We are expecting about Rs 15-18 crore monthly rent  after two and a half years.