Piramal Enterprises and Canadian fund CDPQ Tuesday announced Rs 500 crore equity investment into an integrated township developed by realty major Lodha Developers in the Mumbai Metropolitan Region (MMR). Piramal Enterprises Ltd (PEL) and Ivanhoé Cambridge, a real estate subsidiary of CDPQ (Caisse de Dépôt et Placement du Québec), have made an equity investment of Rs 500 crore from the Piramal Ivanhoe Residential Equity Fund towards Palava, a smart city developed by Lodha group.
Piramal group, in its statement, did not disclose the equity stake acquired by the fund in this project through this investment. Piramal Enterprises had earlier set up a strategic co-investment fund with Ivanhoé Cambridge to provide long term equity capital to blue chip residential developers across the five major metro cities Mumbai, Bengaluru, NCR, Pune and Chennai. Ivanhoé Cambridge had allocated an initial USD 250 million in this fund.
This is the first deal through Piramal Ivanhoe Residential Equity Fund, said Khushru Jijina, Managing Director, Piramal Capital & Housing Finance Ltd, said "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," he added. Rita-Rose Gagné, President, Growth Markets, Ivanhoé Cambridge said the Palava City project is a game-changer for mixed-use residential communities in India.
Lodha group MD Abhishek Lodha said "the current investment is a 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. Phase I, spread across about 300 acres of land is already delivered, while, phase II spread across about 700 acres and is currently under development. Palava is currently home to a population of close to 1 lakh people. Piramal Enterprises is one of India's large diversified companies, with a presence in financial services, pharmaceuticals and healthcare insights & analytics.
(With inputs from agencies.)