Mumbai-based real estate fund manager, Piramal Fund Management, has made a INR 4.25 billion (€56 million; $63 million) investment in a central Mumbai residential project being developed by Lodha Group.
Piramal has structured the investment as fixed-return debt with periodic coupon payments.
The investment is towards construction of premium housing being developed by the Indian developer in a project with more than 500,000 square feet of saleable area. The project, which is already 40 percent sold, is in the midst of construction.
“We are pleased to lend to the Lodha Group; this is our first structured deal with the realty developer. We look forward to deepening our ties as we evaluate their portfolio of projects,” commented Khushru Jijina, managing director, at Piramal.
Pirmal makes investments right from early stage equity to late stage debt and construction finance. The firm also recently announced the 'Piramal Preferred Partner' program whereby it's selected existing development partners are allowed to draw from a pre-sanctioned limit in order to pursue opportunistic acquisitions.