Shapoorji Pallonji’s Imperial Avenue receives investment from Hayfin Capital Management

The investment will support the accelerated completion of Imperial Avenue, Shapoorji Pallonji’s first real estate development outside India

Shapoorji Pallonji International Property Developers (SPIPD), the development arm of Shapoorji Pallonji, one of India’s largest business conglomerates, announced that it has secured an investment from Hayfin Capital Management LLP (Hayfin), one of Europe’s leading alternative asset management firms headquartered in London, UK, to finance the delivery of the landmark Imperial Avenue project in Downtown Dubai. The advisors for this transaction were Houlihan Lokey, Dubai.

Cyrus Engineer, managing director, SPIPD, said: “The Dubai real estate market has seen considerable buyer interest in the past few quarters and the project has seen significant capital appreciation since its launch – a clear testament to its quality and to the faith that has been reposed by our clients and stakeholders. We are now witnessing brisk sales and, while the pandemic has posed some challenges to the rapid progression of the project, our team remains committed to delivering a quality product that will stand the test of time. We are delighted to have Hayfin invest in this landmark project and look forward to a long-term and mutually rewarding partnership with them.”

Downtown Dubai was one of the top three prime areas in terms of sales volume in Q4 2021, with Dh3.2 billion worth of transactions conducted in this period , and the upscale neighbourhood has also experienced a seven per cent year-on-year increase in the average price-per-square-foot for apartments in Q3 2021. A real estate consultancy also recently reported that Downtown Dubai saw average sales prices increase by more than 17 per cent over the last 12 months, noting that properties with Burj Khalifa views command a premium on almost any other property.

The boom in Dubai's real estate market can be traced to several factors, including increased expatriate demand following the recent introduction of long-term visas and relaxation of employment visa rules, making it easier for those who want to live, work and invest in the city. Constructive interest rates and mortgage financing conditions, along with the shift to remote working have also led buyers and tenants to seek more space and upscale offerings. Finally, government initiatives and the proactive management of Covid-19 have also been very important factors.

Approximately 55 per cent of Imperial Avenue’s project construction has now been completed. Construction is in full swing and the expected date of final completion of Imperial Avenue will be the fourth quarter of 2023.