Infrastructure sector projects by Piramal Enterprises in
Project Information
5730
Piramal Enterprises
Ajay Piramal-promoted Piramal Enterprises said it has formed a strategic alliance with Canada Pension Plan Investment Board to set up a $500 million real estate finance company in India. It said the alliance will offer rupee debt financing to residential real estate projects mainly in Mumbai, Delhi, the National Capital Region, Chennai, Pune and Bangalore. It said both the entities have made an initial commitment of $250 million each for the venture. Mumbai-based Piramal Enterprises has presence in pharmaceuticals and financial services. Canada Pension Plan Investment Board (CPPIB) invests the assets of Canada Pension Plan, one of the top 10 retirement funds in the world.This is an opportune time to be creating an aligned pool of capital to target what we believe to be very compelling financing opportunities in the real estate sector," Ajay Piramal, chairman at Piramal Enterprises, said. The non-banking finance company of Piramal Enterprises will route all of its investments hereon through the new venture, the company said. The alliance will be advised by Indiareit Fund Advisors, the real estate fund management arm of Piramal Enterprises.The alliance is likely to invest in residential real estate across the spectrum of affordable to high-end projects depending on investment opportunities.We are looking to deploy the entire corpus in the next 2.5-3 years and aiming at target annual returns of over 18%. We have already identified certain investment opportunities that are likely to be finalised by March end," said Khushru Jijina, MD at Indiareit Fund Advisors.CPPIB is keen on "recycling" the investments of the same size at least once with Piramal Enterprise after the initial commitment is fully deployed, Jijina said. This is CPPIB's second such alliance in India. In November, CPPIB had entered into a joint venture with Shapoorji Pallonji Group for investing in leased and income-producing foreign direct investment (FDI)-compliant office buildings. CPPIB will own 80% of the Shapoorji Pallonji alliance with an initial equity commitment of $200 million.
Project Value
INR 3108 Crore /-
MoU Signed
Multi State
India
Infrastructure
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