Piramal Fund Management, the financial services arm of Ajay Piramal-led Piramal Group, has made investments in the tune of Rs 700 crores in two commercial properties in suburban Mumbai – Reliable Tech Park and Empire Towers. The group will release the funds in tranches as the projects near completion.
This is touted to be one of the largest investments coming into the real estate sector post demonetization.
Reliable Tech Park and Empire Towers sprawl over nearly 2.2 million sq. ft. area at Airoli and are part of the Cloud City Campus which extends to 2.7 million sq. ft. of leasable area.
The proposed investment is in the form of flexible LRD (lease rental discounting) against 0.8 million sq. ft. that is fully leased, with the proceeds going towards completion of the remaining area, according to Piramal Fund Management.
The existing tenants in the two properties include First Source, Sutherland, Maersk, Clariant, and Idea.
The commercial market looks to have gained some momentum in India on the back of healthy leasing activity with a positive flow on rentals. Office space consumption across the top cities was approximately 11 million sq. ft. in Q3 2016, as per CBRE. This was the highest level of absorption in the past 10 quarters.
Piramal Fund Management provides financing solutions to real estate companies. It provides funding through the real estate development life cycle, from early-stage equity to late-stage debt and construction finance.
Source: ET Realty