News Point: Piramal Fund Management (PFM) has invested Rs. 425 crore in a Central Mumbai project being developed by Lodha Group.
PFM has committed Rs. 425 crore to a project being developed by a 100% subsidiary of Lodha Developers. The investment is towards construction of premium residences being developed by Lodha Group in a project with more than 5 lakh square feet of saleable area.
The project, which is already 40% 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.
PFM is uniquely capable of catering to the entire capital stack – right from early stage equity to late stage debt and construction finance and is therefore able to act as a perpetual provider of capital for the real estate development life cycle.
Khushru Jijina, Managing Director, Piramal Fund Management said “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.”
Abhishek Lodha, Managing Director, 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 are constantly looking to grow our pool of credible funding partners and look forward to a long term relationship with them.”
PFM also recently announced the ‘Piramal Preferred Partner’ program whereby its selected existing development partners are allowed to draw from a pre-sanctioned limit in order to pursue opportunistic acquisitions.
Lodha Group has recorded sales of over Rs. 8,000 crores in FY 15-16, sustaining market leadership and unparalleled growth across market cycles.
