Piramal Fund Management (PFM), part of Piramal Enterprises, has invested Rs 425 crore in the Lodha Azzuro residential project in Mumbai’s Parel area to fund its construction.

According to Lodha group, which is constructing the project with 500,000 sq ft saleable area, about 40 per cent of the project has already been sold.

The deal with Piramal has been structured as a fixed return debt investment, with periodic coupon payments. The deal comes at a time when the Lodha group is doing its spadework for an initial public offering of equity and is reportedly in talks with investment bankers for this.

“The real estate market is tight and does not have many good opportunities. Money is going to projects which are viable and where money is safe,” said Sanjay Dutt, managing director, Cushman & Wakefield.

Khushru Jijina, managing director of PFM, said: “We are pleased to lend to the Lodha group; this is our first structured deal with the developer. We look forward to deepening our ties as we evaluate their portfolio of projects.”

PFM is one of the most aggressive investors in the real estate. It recently announced the ‘Piramal Preferred Partner’ programme, under which its partners can draw from a pre-sanctioned limit to pursue acquisitions.

Lodha Group recorded sales of over Rs 8,000 crore in FY15-16, sustaining market leadership and growth across market cycles.

Abhishek Lodha, Managing Director, Lodha Group said: "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.”

Source :- Business Standard