Piramal Capital & Housing Finance, a subsidiary of the diversified Piramal Enterprises Ltd, said on Monday that it has invested Rs 200 crore (around $30 million) in Chennai-based real estate firm Appaswamy Group via structured equity.
According to a statement, Appaswamy will the use the proceeds to acquire a 3.34 acre land parcel in the Kotturpuram locality of Chennai. The land parcel will be developed into a premium residential project.
“Within south India, Chennai is an important market for Piramal Capital & Housing Finance,” said Khushru Jijina, managing director of Piramal Capital & Housing Finance. “Since inception in 2014, we have sanctioned and disbursed Rs 3,500 crore in the Chennai market.”
He added that with consolidation in the space, Piramal will continue to explore strategic partnerships.
Piramal Capital & Housing Finance is registered as a housing finance company with National Housing Bank (NHB) and engaged in various financial services businesses.
Within the real estate space, Piramal Capital & Housing Finance, through its financial partnership model, caters to the entire capital stack – right from early- stage equity to late-stage debt, construction finance, lease rental discounting, bulk buying apartments and housing finance solutions.
Through its group companies, Piramal Capital & Housing Finance provides customised strategies for institutional and retail investors such as Mumbai Redevelopment Fund and Apartment Fund (through Piramal Fund Management) and strategic partnerships with global pension funds such as Canada Pension Plan Investment Board (CPPIB), APG and Ivanhoe Cambridge.
Parent firm Piramal Enterprises has a presence across pharmaceuticals, healthcare insights and analytics, and financial services. The group has identified financial services as its key growth driver and developed significant expertise across asset classes and sectors.
Founded in 1959, Appaswamy is a real estate firm headquartered in Chennai. Apart from commercial and residential properties, it also has interests in the hospitality sector through its business hotels under the The Residency Group.