<article><a style="color: #000080;" href="http://ontent-service.bloomberg.com" target="_blank">Piramal Fund Management Pvt. Ltd</a> has invested Rs.425 crore ($62.8 million)  in a central Mumbai project being developed by <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Lodha+Developers+Pvt.+Ltd">Lodha Developers Pvt. Ltd</a> through the structured debt route.</article>

<a style="color: #000080;" href="http://ontent-service.bloomberg.com" target="_blank">Piramal Fund Management Pvt. Ltd</a> has invested Rs.425 crore ($62.8 million)  in a central Mumbai project being developed by <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Lodha+Developers+Pvt.+Ltd">Lodha Developers Pvt. Ltd</a> through the structured debt route.
The investment is towards construction of premium residences being developed by Lodha Developers in a project with more than 5 lakh sq.ft of saleable area. The project, 40% of which is already sold, is under construction.
“This is our first structured deal with the realty developer. We look forward to deepening our ties as we evaluate their portfolio of projects,” said Khushru Jijina, managing director, Piramal Fund Management.
The deal has been structured as a fixed-return, debt investment with periodic coupon payments and has an appropriate security mechanism in place, including hard asset cover as well as escrow of receivables.
Piramal Fund Management is fast emerging as one of the largest and most aggressive real estate investors, with loan book and equity investments worth Rs.22,000 crore in the residential space alone.
In February, Piramal Fund said it will pre-sanction a Rs.15,000 crore funding limit to back about 8-10 developers in Mumbai, Bengaluru, National Capital Region, Pune and Chennai through a new scheme called Piramal Preferred Partners.
Under the new scheme, Piramal Fund will enter into investment partnerships with a few chosen property firms, some of its existing partners and a few new ones, and commit about $250-300 million to each of them, which it will disburse as and when the developer brings a deal to the table.
“We are pleased with Piramal Fund Management’s decision to invest with us given the experience, scale and depth of their financing platform. We are constantly looking to grow our pool of credible funding partners and look forward to a long-term relationship with them,” said Abhishek Lodha, managing director, <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Lodha+Group">Lodha Group</a>.
Last week, <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Moody%E2%80%99s">Moody’s Investors Service</a> downgraded the corporate family rating of Lodha Developers as well as the senior unsecured debt rating of the $200 million dollar-denominated bonds issued by Lodha Developers International Ltd.
Mumbai-based Lodha Developers generated operating sales of Rs.6,430 crore in 2015-16 against Moody’s expectation of Rs.9,000-9,300 crore. The realty firm’s cash collections of Rs.6,200 crore during the year were higher than last year’s collection by 14%, but were lower than Moody’s expectation of Rs.7,500-8,000 crore for fiscal 2016, the Moody’s report said.
Also Read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/ajay-piramal-hints-at-impending-revamp-at-piramal-enterprises-41086/">India: Diversified Piramal Enterprises to undertake restructuring to unlock value</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/india-piramal-to-partner-pension-fund-to-launch-250m-realty-platform-36843/">India: Piramal to partner pension fund to launch $250m realty platform</a>
<h4 style="text-align: justify;">This story was first published on <a href="http://www.livemint.com">livemint.com</a></h4>

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India: Piramal Fund Management invests $62.8m in Lodha’s Mumbai project

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India: Piramal Fund Management invests $62.8m in Lodha’s Mumbai project

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