Piramal Fund Management plans to invest up to Rs 5,000 crore over the next one year to finance construction projects, a top company executive said. The fund has already invested in nine realty projects through construction finance proposals totaling Rs 1,100 crore in the last three months.
´We are looking to invest up to Rs 5,000 crore in real estate projects through construction finance before March 2016. Currently, developers´ demand for construction finance is not being met entirely and the gap exists,´ said Khushru Jijina, MD, Piramal Fund Management. These investments, to be backed by mortgage of respective projects, will be made through internal accruals of Piramal Enterprises. The returns from these loans are expected to be in the range of 14-16 per cent. The fund had announced its plan to enter the construction finance space in the third quarter of FY15, and has already extended loans to developers.
Piramal to invest Rs.5,000 crore in realty projects
Leave a Reply
You must be logged in to post a comment.