India: Piramal-Ivanhoe fund cuts first deal with $70m investment in Lodha township

Photo: Mint

Two years after Piramal Enterprises Ltd (PEL) and Ivanhoé Cambridge, a real estate subsidiary of Canada’s second largest pension fund Caisse de dépôt et placement du Québec (CDPQ) entered into a strategic partnership, the duo on Tuesday announced its first transaction with an investment of 500 crore in the Lodha Group’s township project, Palava, in suburban Mumbai.

The investment will be made from the Piramal Ivanhoe Residential Equity Fund.

In February 2017, PEL had announced a strategic co-investment fund with Ivanhoé Cambridge to provide long-term equity capital to good quality residential developers in Mumbai, Bengaluru, the National Capital Region (NCR), Pune and Chennai. Ivanhoé Cambridge had allocated an initial $250 million towards this fund.

“…We believe that the timing is opportune for the provision of equity capital over a longer time horizon and facilitate participation in larger projects with the ability to generate returns across real estate cycles. We are committed to supporting the demand for equity from blue-chip real estate developers as they increasingly leverage investor partnerships in the early stages of the development,” said Khushru Jijina, Managing Director, Piramal Capital & Housing Finance Ltd, in a statement.

Rita-Rose Gagné, President, Growth Markets, Ivanhoé Cambridge, said,“We are pleased to be investing in Palava City, a project we believe is a game-changer for mixed-use residential communities in India. As investors, we understand how our capital can play an important role in developing sustainable and modern places to live, work, play and more, in major cities around the world. We look forward to a successful project and more to come.”

Abhishek Lodha, Managing Director, Lodha Group, said, “..The current investment is testament to our proven track record in the affordable housing segment and our vision for developing Palava as one of the 50 most livable cities in the world.”

Palava City is an integrated smart city near Mumbai, with over 4,500 acres of land being developed across different phases.

In 2016, Piramal Fund Management Pvt. Ltd said it will invest2,320 crore in Lodha’s signature World Towers project in central Mumbai, in one of the largest debt financing deals in Indian real estate.

This article was first published on livemint.com

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.