Piramal Fund Management, the real estate investment arm of Ajay Piramal-led Piramal Enterprises, has committed to investing ₹1,200 crore in Omkar Group’s luxury residential project in Mumbai. The project, Omkar 1973, comprising three high-rise towers, is spread over a nine-acre plot at Worli. This is one of the largest single project financing transactions, the company said in a statement.
Of the total commitment, ₹400 core will be used to refinance existing debt.
The remaining ₹800 crore would be secured against a 20:80 scheme, and is intended to be drawn as construction progresses over the next two years, Piramal Fund Management said in a statement.
“With this funding, we have achieved full financial closure for the construction and completion of Omkar 1973,” said Babulal Varma, Managing Director at Omkar.
Omkar 1973 is the realtor’s flagship property. Of its three towers, two are mid-way to completion and are expected to be delivered and handed over by the end of 2017.
“This is a novel structure with a combination of senior debt as well as project funding secured against a successful 20:80 scheme in a project that is clearly established with about 60 per cent sales and visible construction progress,” said Khushru Jijina, Managing Director, Piramal Fund Management.