Piramal Enterprises today said it has provided Rs 1,100 crore funds to real estate firm Embassy group for development of housing and commercial projects in Bengaluru, Chennai and Hyderabad. “Piramal Enterprises through its subsidiary Piramal Finance Ltd has financed the Embassy Group for an amount of Rs 1,100 crore,” a company statement said.
The funding has been done to residential and commercial projects in Bengaluru, Chennai and Hyderabad over a span of the last six months, it added. Piramal Finance first funded Rs 360 crore towards Embassy Residences project in Chennai spread over 25 acres with about 0.3 million sq ft of built-up area.
Then it made an investment in Phoenix-Embassy, which is a joint venture between Embassy and Phoenix Group of Hyderabad. The JV is developing about 1.5 million sq ft of grade-A commercial space in Hyderabad with a potential to develop a further 4 million sq ft.
Later, Piramal Finance has provided Rs 650 crore of growth capital to the Embassy Group. Bengaluru-based Embassy Group is one of India’s largest commercial real estate developers having delivered about 30 million sq ft of commercial office space and around 6 million sq ft of housing. The Group has a pipeline of about 17 million sq ft of commercial developments across Bengaluru, Hyderabad and Chennai.
Piramal Finance Ltd MD Khushru Jijina said the company has provided Embassy Group with customised financial solutions to scale up the presence across both residential and commercial projects. Embassy group CMD Jitu Virwani said: “We are delighted to be working closely with a large diversified conglomerate like the Piramal Group which is known for its structuring capabilities and quick turnaround time.”
He said the company would leverage Piramal Group capabilities as we partner with them on our growth capital requirements going forward.” Piramal Enterprises is one of India’s large diversified companies, with a presence in pharma, healthcare insights and analytics and financial services. Its consolidated revenues were over USD 1.3 billion in the financial year 2016-17, with 51 percent of revenues generated from outside India.