Piramal commits over $176m to Indian developer

The firm has deployed over INR 100bn in South India and has a particular interest in Bangalore, Chennai and Hyderabad.

Piramal Fund Management (PFM), the real estate investment arm of India’s Piramal Enterprises, has committed INR 7.5 billion ($110 million; €103 million) to Bengaluru-based Adarsh Developers for several real estate financing projects.

The investment will be in the form of structured debt and construction finance. Around INR 5.5 billion of the financing will be used to refinance the company’s existing loans and the rest will be used for working capital requirements for the company’s seven real estate development projects where four are close to completion, two are under construction and one is in the pipeline.

“South India, particularly Bengaluru, gives us the opportunity to look at various price points and tap into a large commercial office market. While Chennai continues to do well, Hyderabad is a market we will step up investments in,” said Khushru Jijina, managing director at PFM.

This is PFM’s third investment in the developer. It has previously invested INR 2 billion and INR 2.5 billion in 2014 and 2015 respectively, according to a local news report.

“Piramal Fund Management is committed to enabling liquidity in the ecosystem and, as markets consolidate, we will extend our partnerships in South India by underwriting multi-city portfolios with existing and new Tier 1 developers,” Jijina said.

PFM has made over INR 100 billion in aggregate investments in South India. The company has exposure across both the residential and the commercial segment in the south. It has also recently launched a flexible Lease Rental Discounting (LRD) programme to finance completed commercial real estate projects in the region.

Adarsh Developers is a real estate developer in Bengaluru, established in 1988. One of the company’s most notable development projects is the development of luxury hotel Shangri-La in Bengaluru in 2015.