Published On: Fri, Jun 9th, 2017

Piramal Invests Rs 1100 Cr in Embassy Groups Realty Projects

Embassy Group’s Realty Projects :- Piramal Enterprises through its subsidiary Piramal Finance, the financial services arm of the Ajay Piramal-led Piramal Group, on Wednesday announced that it has infused around $171 million (Rs 1,100 crore), into real estate developer Embassy Groups projects.

The cumulative funding has been done sequentially across both residential and commercial projects spread across Bengaluru, Chennai and Hyderabad over a span of the last six months.

PFL first extended funding of Rs. 360 crore towards Embassy Residences in Chennai – a premium residential project spread over 25 acres with 0.3 million sq. ft. of built-up area.

It followed up with an investment in Phoenix-Embassy, a joint venture between the Embassy and Phoenix Group of Hyderabad. The joint venture is developing 1.5 million sq. ft. of grade-A commercial space in the financial district of Hyderabad with the potential to develop a further 4 million sq ft.

Subsequently, PFL provided Rs. 650 crore of growth capital to the Embassy Group in Bengaluru.

Industry sources say that the Embassy Group has delivered roughly 30 million sq ft of commercial office space and 6 million sq ft of premium residential space. In the pipeline are nearly 17 million sq ft of commercial projects in Bengaluru, Hyderabad and Chennai.

Khushru Jijina, MD, Piramal Finance Ltd, said that they are pleased to have extended their relationship with the Embassy Group and look forward to a long and mutually beneficial association.

Embassy are also delighted to be working closely with a large diversified conglomerate like the Piramal Group which is known for its structuring capabilities and quick turnaround time, said Embassy group CMD Jitu Virwani. The company would leverage Piramal Group capabilities as they partner with them on their growth capital requirements going forward.

Piramal Fund Management, the real estate funding arm of the group recently invested Rs 1,020 crore across projects of Wadhwa Group and ASF Group while also signing a platform deal with Ivanhoé Cambridge, a real estate subsidiary of Canadian pension fund Caisse de dépôt et placement du Québec, to provide long-term equity capital to residential property developers in India.

Piramal Enterprises is one of India’s large diversified companies, with a presence in pharma, healthcare insights and analytics and financial services. Its consolidated revenues were over USD 1.3 billion in financial year 2016-17, with 51 percent of revenues generated from outside India.

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