Piramal Enterprises through its PFM Division, provides comprehensive financing solutions to real estate companies.
PFM has committed Rs 425 crore to a project being developed by a 100 per cent subsidiary of Lodha Developers Pvt Ltd, the flagship company of Lodha Group.
The investment is towards construction of premium residences being developed by Lodha Group in a project with more than 5 lakh sq ft of saleable area.
The project, which is already 40 per cent sold, is in the midst of construction.
"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," the statement said.
PFM is uniquely capable of catering to the entire capital stack - right from early stage equity to late stage debt and construction finance and is therefore able to act as a perpetual provider of capital for the real estate development life cycle, it added.
Mumbai-based developer Lodha Group recorded sales of over Rs 8,000 crores in FY16 .
"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.
Lodha group MD Abhishek Lodha said: "We are constantly looking to grow our pool of credible funding partners and look forward to a long term relationship with them."
Piramal Enterprises is one of India's large diversified companies, with a presence in Healthcare, Healthcare Information Management and Financial Services. Its consolidated revenues were around $1 billion in 2015-16, with 61 per cent of revenues from outside India.
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