Piramal Fund Management, has signed to invest another Rs 425 crore to Vatika Group helping develop a commercial project One on One in Gurugram.
This is reportedly the fund’s third transaction with Gurugram-based real estate developer Vatika Group. Last year, it has sanctioned Rs 150 crore of construction finance to help developer’s construction project in Faridabad.
“The investment is in the form of construction finance debt, and disbursement would be milestone linked… The total tenure of the facility is 5 years,” says the official, in the reply to an email.
The One on One project has spread across 13 acres of land aiming to construct 2 million sq. ft. commercial space in phases. Currently, first phase is in progress where two towers are in construction phase.
The wholesale fund and funding arm of Piramal Group, Piramal Fund Management deals with real estate funding needs across entire capital stack from early-stage private equity to senior secured debt and construction finance. The fund’s total size is about Rs 19,170 crore by September end. It will soon be planning to launch a fund which can help builders comply with project financing norms under Real Estate Regulatory Act (RERA). RERA regulation states that builders must manage 70% revenue of any project in an escrow account.
Source: ET Realty