Piramal gives Rs 1,100 crore to Embassy for southern projects

Piramal Enterprises on Wednesday gave Rs 1,100 crore to real estate firm Embassy Group for developing commercial and residential projects in south India.

In a statement, the company said the debt had been provided through its subsidiary, Piramal Finance (PFL), for projects in Bengaluru, Chennai and Hyderabad over six months.

Of the total amount, PFL gave Rs 360 crore to Embassy Residences in Chennai — a premium residential project spread over 25 acres, with about 0.3 million sq ft of built-up area.

Another investment was made in the Phoenix-Embassy, a joint venture (JV) between Embassy and Phoenix Group of Hyderabad. The JV is developing 1.5 million sq ft of Grade A commercial space in the financial neighbourhood of Hyderabad. It has the potential to develop 4 million sq ft more.

PFL also provided Rs 650 crore as growth capital to the Embassy Group in Bengaluru.

The Embassy Group is one of India’s largest commercial real estate developers, having delivered about 30 million sq ft of marquee space and about 6 million sq ft of premium residential space. In the pipeline, the group has 17 million sq ft of commercial space across Bengaluru, Hyderabad and Chennai.

Jitu Virwani, chairman and managing director, Embassy Group, said, “We look forward to leveraging their capabilities as we partner with them on our growth capital requirements.”

Piramal Enterprises is one of India’s large diversified companies, with a presence in pharma, healthcare insights and analytics and financial services, with consolidated revenues of $1.3 billion in FY17.

With additions from PTI