Piramal Finance invests Rs 550 crore in Rustomjee's Mumbai project

Piramal Finance has invested Rs 550 crore in realty firm Rustomjee group township project in Mumbai.

Piramal Finance "has sanctioned about Rs 1,000 crore of growth capital and customised financing solutions across multiple projects of the Rustomjee group".

The projects include redevelopment, large format townships as well as affordable housing, a company statement said on Monday.

Piramal Finance is a subsidiary of Piramal Enterprises.

"The monies have been given in the form of construction finance as well as corporate funding for growth requirements at the group level," it said.

Piramal Finance has recently sanctioned Rs 550 crore deal to the Rustomjee 'Urbania' project in Thane. The township project is spread over 127 acres with 7 million sq ft of development potential, of which 2 million sq ft is already delivered.

"The funding is structured as senior secured debt to meet project expenses and intended towards delivery of a further 2 million sq ft, which is presently at various stages of construction progress," Piramal Finance said.

The company has provided Rs 130 crore debt finance towards Rustomjee 'Summit' project in Borivali as well as Rs 190 crore of growth capital to Rustomjee 'Global City' at Virar and Rustomjee 'Meridien' at Kandivali.

Earlier, Piramal Finance concluded Rs 110 crore transaction in Rustomjee 'Seasons' project in BKC which stands fully repaid.

Khushru Jijina, Managing Director, Piramal Finance, said the Rustomjee group is a preferred partner for the company.

"With consolidation being inevitable in the industry, we also look forward to jointly evaluating opportunities for potential acquisition or takeover of attractive land parcels and partially completed projects on an ongoing basis," he added.

Boman Irani, Chairman and MD, Rustomjee Group, said the company has concluded multiple transactions with the Piramal group.

"We believe they understand the real estate business extremely well and have provided us with unique insights as well as creative and customised solutions time and again to meet our growth capital needs," Irani said.