Ajay
Piramal-led Piramal Fund Management has invested total Rs 225 crore in a realty
project of developer Ganesh HousingBSE 6.92 % Corporation. The real estate
investment platform of Piramal Enterprises has invested in the project spread
over 10 acres in Ahmedabad through debt.
The
transaction marks Piramal Fund Management's foray into Ahmedabad and any tier
II city. The fund has so far been focusing on top five property markets
including Mumbai, Pune, Bangalore, National Capital Region and Chennai.
Apart
from our investment focus in on top five cities, we will also be looking at
tier II cities with prominent markets like Ahmedabad, Kolkata, Nagpur, Nashik,
Coimbatore and Jaipur," Khushru Jijina, MD, Piramal Fund Management told
ET. "Our decision to expand our target geographies was based on a great
deal of research in potential target locations and we found Ahmedabad to be a
viable destination for investment and look forward to expanding our presence
over time."
The fund has invested around Rs 200 crore in the project to
support Ganesh Housing's acquisition of the land parcel situated close to
Surdhara Circle in Thaltej, Ahmedabad, while Rs 25 crore have been sanctioned
as working capital for the project.
The project is estimated to have total
development potential of 1.8 million sq ft of saleable area. It will be
developed as a mixed use project with a combination of 12 residential towers
coupled with both commercial as well as a high street retail component.
The deal has been structured as a fixed return
investment of over 18% with appropriate security and control mechanisms in
place. The project is expected to be completed in the next five years, which is
also the tenure of the debt.
Piramal
Fund Management's structured investments division invests in various sectors
including infrastructure and total funds under management under these
businesses are around $2 billion. Piramal Fund also has strategic alliances
with pension funds like CPPIB Credit Investment and APG Asset Management.
Source: EconomicTimes
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