Piramal Enterprises partners with Ivanhoe Cambridge for real estate financing

Piramal Enterprises Ltd (PEL) has announced strategic partnership with Ivanhoe Cambridge, a real estate subsidiary of CDPQ (Caisse de dépôt et placement du Québec) to provide capital to real estate developers in five major metro cities in India.
 
Ivanhoe Cambridge is allocating an initial US$250 million for this purpose. PEL will commit additional amount and co-invest 25 per cent and 50 per cent for projects financed. The demand from developers for initial capital from investors is high.
 
However, the financing will be provided to Grade A developers who already have a good track record of execution capability, corporate governance and  strong return potential. The focus will be given to country’s major metropolitan regions such as Mumbai, Pune, Chennai, Hyderabad, New Delhi, Bangalore.
 
Chairman of Piramal Enterprises Ltd. said, “The relationship with Ivanhoe Cambridge will enable company to execute on very compelling opportunities to deliver high quality residential developments.” The company is looking for return on equity of 20-25 per cent. The company's current loan book stands at Rs 35,000 crore.
 
Ivanhoé Cambridge, a global real estate industry leader, was founded in 1953 in Quebec, Canada. The company invests in high-quality properties and companies in select cities around the world. Under the partnership, the companies are looking forward to investing Rs 200 crore per project and are expected to start one project in the coming four months.
 
 Piramal Enterprises closed 1.66 per cent down to Rs 1866 after opening at Rs 1900.