Piramal Fund Management, the real estate-focused investment arm of Piramal Enterprises Ltd, has invested Rs 750 crore (about $110 million) across a bunch of projects of Bangalore-based Adarsh Developers.
The developer will use a major portion of the proceeds–Rs 550 crore—to refinance existing loans and the rest for working capital requirements, the company said in a statement.
The statement said that the funding facility has been given against seven projects. Of these, four are nearing completion, two are under construction and one is planned.
The transaction is structured in two layers with the structured debt part consisting of Rs 170 crore. The remaining is in the form of construction finance.
With this investment, Piramal’s total exposure to the developer stands at Rs 1,000 crore.
Meanwhile, the investment firm said in a separate statement its aggregate investments from the proprietary book of Piramal Enterprises in South India, including Chennai and Hyderabad, has surpassed Rs 10,000 crore. Apart from Adarsh Developers, it has invested Rs 1,050 crore in another Bangalore developer Ozone Group.
Khushru Jijina, managing director at Piramal Fund Management, said the firm will extend its partnerships in South India by underwriting multi-city portfolios with existing and new Tier 1 developers.
Piramal Fund’s exposure in South India extends across both residential and commercial real estate. It has innovative funding products in its kitty including a recently launched flexible Lease Rental Discounting product as well as customised funding for plotted land developments.
The statement said that the first phase of the Piramal Preferred Partner programme, under which a Rs 15,000 crore line of credit was extended to select developments, has been 50% used and that the second phase will target selected developers in South India.
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