Piramal Finance, the financial services arm of Ajay Piramal-led Piramal Enterprises, has extended loans worth Rs 1,000 crore to real estate developer Rustomjee Group as construction finance as well as corporate funding for growth requirements at the group level.
With the introduction of RERA, Piramal Finance, through its entire suite of products, is following a ‘financial partnership’ model by extending holistic solutions to developers.
PFL most recently sanctioned an Rs 550 crore deal to Rustomjee ‘Urbania’ in Thane. Urbania is an ongoing 127-acre township with seven mn sq. ft. of development potential, of which 2mn sq. ft. is already delivered.
The funding is structured as senior secured debt to meet project expenses and intended towards delivery of a further 2mn sq. ft. which is at various stages of construction progress.
In addition PFL has also extended Rs 130 crore of debt finance towards Rustomjee ‘Summit’ in Borivali as well as Rs 190 crore of growth capital secured against Rustomjee ‘Global City’, Virar and Rustomjee ‘Meridien’, Kandivali. Previously, PFL has also concluded an Rs 110 crore transaction in Rustomjee ‘Seasons’ in BKC which stands fully repaid.
Khushru Jijina, Managing Director, Piramal Finance Limited, said “With consolidation being inevitable in the industry, we also look forward to jointly evaluating opportunities for potential acquisition or takeover of attractive land parcels and partially completed projects on an on-going basis.”
Boman Irani, CMD, Rustomjee Group, said: “We are extremely pleased to have concluded multiple transactions with the Piramal Group. We believe they understand the real estate business extremely well and have provided us with unique insights as well as creative and customized solutions time and again to meet our growth capital needs.