Published On:May 24 2016
Story Viewed 714 Times
Lodha Group raises ₹425 cr from Piramal.
Private equity play in the real estate segment is gathering momentum.
Even as global investment firm KKR announced plans last week to invest ₹145 crore in Mantri Developers’ luxury housing project in Bengaluru, Piramal Fund Management has invested ₹425 crore in a central Mumbai project being developed by the Lodha Group. Piramal’s funds will be used in the construction of premium residences being developed by Lodha Group in a project with more than 5 lakh sq ft of saleable area. The company said the project, which is already 40 per cent sold, is in the midst of construction.
The deal has been structured as a fixed return debt investment with periodic coupon payments and has an appropriate security mechanism in place including hard asset cover as well as escrow of receivables.
Khushru Jijina, MD, Piramal Fund Management, said: “We are pleased to lend to the Lodha Group; this is our first structured deal with the realty developer.”
The fund has committed ₹425 crore to a project being developed by a 100 per cent subsidiary of Lodha Developers, the flagship company of the group. Lodha Group, India’s largest real estate developer by sales for four consecutive years, covers all property segments, from ₹40 lakh to over ₹5 crore.
Abhishek Lodha, MD, Lodha Group, said: “We are pleased with Piramal Fund Management’s decision to invest with us given the experience, scale and depth of their financing platform. We look forward to a long-term relationship with them.”