Piramal deal with Canada fund

Piramal deal with Canada fund Mumbai, Feb. 23: Piramal Enterprises Ltd today entered into a partnership with Ivanhoé Cambridge - a real estate subsidiary of Canadian pension fund CDPQ - to provide long-term equity capital to home developers in Mumbai, Delhi, Chennai, Bangalore and Pune. Ivanhoé Cambridge will allocate an initial $250 million for this purpose. Piramal will commit an

additional amount and co-invest 25-50 per cent of each transaction. Both the entities are banking on the strong demand for equity as top developers prefer partnering investors in the early stages over high-cost financing. "Given the scale of our existing real estate offering and roster of existing developer relationships, the partnership will enable us to execute(निष्पादित) on very compelling opportunities to deliver high quality residential developments in the local markets that we service," Ajay Piramal, chairman, Piramal Enterprises said.  Khushru Jijina, managing director, Piramal Fund Management, said: "We believe that the timing is opportune for the provision of both pure and preferred equity capital at an early stage in the project life cycle. "Such equity funding with Tier 1 development partners will enable us to deploy capital over a longer time horizon and facilitate(की सुविधा) participation in larger projects with the ability to generate returns across real estate cycles," he said. Diversified(विविध) Piramal Enterprises is present in pharmaceuticals, healthcare information management and financial services. Its consolidated revenues were around $1 billion in 2015-16, with 61 per cent of revenues coming from overseas. In financial services, Piramal Enterprises, through Piramal Fund Management Division, provides financing solutions to real estate companies. The division's structured finance group also provides senior and mezzanine(परछत्ती) growth capital to various businesses across various sectors.