23rd May 2016, Mumbai: Piramal Fund Management (PFM), one of the largest real estate focused fund and funding platforms and part of Piramal Enterprises, has invested INR 425cr in a Central Mumbai project being developed by Lodha Group. Lodha Group is India’s largest real estate developer by sales for four consecutive years.
PFM has committed INR 425cr to a project being developed by a 100% subsidiary of Lodha Developers Pvt. Ltd, the flagship company of Lodha Group. The investment is towards construction of premium residences being developed by Lodha Group in a project with more than 5 lakh sq.ft. 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. PFM also recently announced the ‘Piramal Preferred Partner’ program whereby it’s selected existing development partners are allowed to draw from a pre-sanctioned limit in order to pursue opportunistic acquisitions.
Lodha Group has a track record of robust business performance and an ability to produce high quality products across different market segments. The Group recorded sales of over INR 8,000 crores in FY 15-16, sustaining market leadership and unparalleled growth across market cycles.
Mr. 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.”
Mr. 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.”
About Piramal Enterprises Limited
Piramal Enterprises Limited (PEL) is one of India’s large diversified companies, with a presence in Healthcare, Healthcare Information Management and Financial Services. PEL’s consolidated revenues were around $ 1 billion in FY2016, with 61% of revenues from outside India.
In healthcare, PEL is one of the leading players globally in CRAMS (custom research and manufacturing services) as well as in the critical care segment of inhalation and injectable anaesthetics. It also has a strong presence in the OTC segment in India.
PEL’s healthcare information management business, Decision Resources Group, is amongst the top 20 US market research organizations which provide information services to the healthcare industry.
In financial services, PEL, through its Piramal Fund Management Division, provides comprehensive financing solutions to real estate companies. The Structured Investment Group (“SIG”) provides long term patient mezzanine growth capital to capital intensive businesses which are integral part of India’s growth story. The total funds under management under these businesses are $ 3.3 billion. The Company also has strategic alliances with top global pension funds like CPPIB Credit Investment Inc. and APG Asset Management. PEL also has long term equity investments worth over $ 700 million in Shriram Group, a leading financial conglomerate in India.
PEL is listed on the Bombay Stock Exchange and the National Stock Exchange in India.
About Lodha Group:
Established in 1980, privately held Lodha Group is India’s leading real estate developer and amongst the world’s select multinational real estate developers with presence in India and the United Kingdom. The company is one of the most profitable players in India and the largest by sales, having clocked over INR 8,000 Cr for FY 15-16 – larger than #2 and #3 players combined in India. The company is currently developing around 43 million sq. ft. of prime residential real estate globally with the largest land reserves in the Mumbai Metropolitan Region and has 28 ongoing projects across London, Mumbai, Pune and Hyderabad and Bangalore. In 2015, Lodha Group delivered 5.7 million sq ft of real estate and 5,500 units across projects. The group plans to deliver more than 11.8 million sq. ft. of real estate in 2016.
Lodha Group has several landmark developments to its credit including World One, Mumbai, the world’s tallest residential tower, and has brought some of the top global names including Armani/Casa, Trump, Philippe Starck, Jade Jagger, Greg Norman and Pei Cobb Freed to India. In 2013, the Group has extended its international footprint with the acquisition of the landmark MacDonald House at 1 Grosvenor Square in Prime Central London from the Canadian Government for a consideration of over GBP 300 million (INR 3,100 Cr).Lodha Developers is one of the largest corporate entities in Mumbai, with over 3,870 direct associates and over 25,000 workmen at its sites. The group is committed to investing two per cent of its profits towards corporate social responsibility, focused primarily on education as a transformative tool. With offices in London, Dubai and Shanghai and planned openings in the USA and Singapore, Lodha Group is on the road to substantial international presence.
For Media Queries – Piramal Enterprises:
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Tel: +91 22 3351 4082 / 4083
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