Piramal Finance Limited (PFL), a subsidiary of India’s Piramal Enterprises Limited, has lent a total of INR11 billion ($171 million, €153 million) to commercial real estate developer Embassy Group.
The financing is broken down into two parts. Construction finance of INR4.5 billion has been advanced to back the development of a premium residential project, Embassy Residences, in Chennai and a commercial real estate project in the financial district of Hyderabad, a joint venture between Embassy and Phoenix Group of Hyderabad, according to a release.
The second part of the financing is a INR6.5 billion loan made to Embassy Group for the firm to in turn lend the money to Manyata Promoters Ltd, its project partner in the Embassy Manyata Tech Park, a prominent information technology special economic zone in Bengaluru. The proceeds will be used by Manyata to repay existing loans and for growth capital, according to a local news report which was confirmed by PFL.
“We are pleased to have extended our relationship with the Embassy Group and look forward to a long and mutually beneficial association…We are happy to provide them with customised financial solutions as they scale up their presence across both residential and commercial,” said Khushru Jijina, managing director at Piramal Fund Management.
The Embassy Group is one of India’s largest commercial real estate developers, having delivered 30 million sq. ft. of marquee commercial office space and 6 million sq. ft. of premium residential developments. The group has a pipeline of 17 million sq. ft. of commercial developments across Bangalore, Hyderabad and Chennai.
PFL is a division of Piramal Fund Management (PFM). PFM provides wholesale and retail funding opportunities within real estate and non-real estate sectors across the entire capital stack including early-stage private equity, structured debt, senior secured debt and construction finance.
It has total funds under management of $5 billion and recently applied for a housing finance company (HFC) licence. It has strategic alliances with global funds such as APG Asset Management, Bain Capital Credit, CPPIB Credit Investment and Ivanhoé Cambridge.