Piramal Fund Management, the Mumbai-based real estate fund manager, has invested INR 23.2 billion ($348 million; €310 million) across multiple real estate developments in Mumbai.
The firm has invested with the Indian real estate developer Lodha Group, providing investment to replace existing debt facilities. The deal has been structured as a fixed-return debt investment with periodic coupon payments.
This funding will enable Lodha to complete and deliver projects in south and central Mumbai. The invested projects are at various stages of advanced construction.
“This transaction demonstrates our ability and willingness to scale our financing relationships with our choice of partners and stands testament to the marketing and execution track record demonstrated by Abhishek [managing director, Lodha Group]. The use of proceeds will ensure completion of what we believe to be marquee projects in Central and South Mumbai,” commented Khushru Jijina, managing director, Piramal.
This is the second investment by Piramal in the Lodha Group. In August Pirmal invested in INR 42.5 billion in Lodha Venezia, an advanced stage residential project in Mumbai.
Piramal Fund Management is a subsidiary of Piramal Enterprises, one of India’s largest conglomerates with a presence in healthcare and financial services. The group’s consolidated revenues were around $1 billion in H1 2016, with 61 percent of revenues from outside India.
Piramal Fund Management provides financing solutions to real estate companies. The total funds under management under these businesses are $3.3 billion.