MUMBAI: Piramal Fund Management, the realty investment arm of Ajay Piramal-led Piramal Enterprises, has invested in Ahuja Constructions‘ premium residential project Altus in Mumbai’s Worli locality to support the project’s total construction cost of Rs 100 crore. The fund is investing in the project through a fixed-return debt instrument with periodic coupon payment.
The project with a total built-up area of 2.34 lakh sq ft is estimated to generate revenue worth Rs 700 crore based on the current property rates in the vicinity.
“We have always adopted a relationship-driven approach to our funding business and are pleased to be starting a relationship with the Ahuja Group. We look forward to scaling the relationship further given their portfolio of existing and future projects as well as demonstrated execution track record,” said Khushru Jijina, managing director, Piramal Fund Management.
Ahuja Constructions is expected to construct and market the project, while Piramal Fund Management is entering the project as a financial partner.
“We are pleased to be associated with Piramal Fund Management and hope that this is one of the many fruitful transactions we will have in the future. We look forward to gaining from their experience and understanding of real estate as an active investor in the market. Altus is expected to click with target audience as it’s a similar proposition as that of Ahuja Towers, but for a niche segment of 3 BHK,” said Gautam Ahuja, managing director, Ahuja Constructions.
The project with sea-view has total 60 apartments with configuration of 3 bedroom apartments on each floor in both the wings. It also has a pent house at the top and a duplex of 6-bedroom configuration. Apartments in the 42-storey project start at a price of Rs 8.5 crore. Ahuja Constructions has so far delivered 44 projects in Mumbai and Navi Mumbai.
Piramal Fund Management, one of the largest investors of real estate in India, had deployed Rs 16,000 crore through debt and Rs 6,000 crore through equity transactions until February this year.
In February 2014, Piramal Enterprises had formed a strategic alliance with Canada Pension Plan Investment Board to set up a $500-million real estate finance company in India, with the two entities making an initial commitment of $250 million each. The alliance has been offering rupee debt financing to residential real estate projects, mainly in Mumbai, Delhi, the National Capital Region, Chennai, Pune and Bengaluru.
Piramal Fund Management provides comprehensive financing solutions to real estate companies. It provides funding through the real estate development life cycle from early stage equity to late stage debt and construction finance. The fund recently announced the ‘Piramal Preferred Partner’ programme, whereby its selected existing development partners are allowed to draw from a pre-sanctioned limit.