Feb 8: Piramal Enterprises Ltd (PEL) and Ivanhoé Cambridge, a real estate subsidiary backed by Canada’s second largest pension fund Caisse de dépôt et placement du Québec (CDPQ), have invested Rs 500 crore in a township project of Lodha Group in Palava, in suburban Mumbai. The companies’ first transaction is being made after two years of its strategic partnership. The Piramal Ivanhoe Residential Equity Fund will make the investment.
PEL had announced a strategic co-investment fund with Ivanhoé Cambridge in February 2017. This offered a long-term equity capital to good quality residential developers in Mumbai, Bengaluru, the National Capital Region (NCR), Pune and Chennai. An initial investment of $250 million was allotted by Ivanhoé Cambridge for this fund.
Reports said that the company is dedicated towards the demand for equity from blue-chip real estate developers because they increasingly control investor partnerships in the initial stages of the development.
Rita-Rose Gagné, President, Growth Markets, Ivanhoé Cambridge revealing that they are thrilled to fund in the Palava City said that the project will be a milestone to the mixed-use residential communities in India. Talking from an investor’s point of view she said that the importance of the capital and how it helps in enhancing the sustainable and modern places to live, work, play and the like in places throughout the world.
The latest investment proves Lodha group’’s wellness in the affordable housing industry. He also added that this will boost their aim to elevate Palava among the 50 most livable cities in the world.
With around 4,500 acres of land which is being developed in various phases, Palava City is a smart city situated in Mumbai.
At one of India’s largest debt financing deals in the real estate segment, Piramal Fund Management Pvt. Ltd had announced that it will invest Rs 2,320 crore in Lodha’s signature World Towers Project in central Mumbai in 2016.