Piramal Group sanctions loan of Rs. 400 crore to Advance India Projects Ltd
The Piramal Group has sanctioned a Rs. 400 crore loan to Gurugram-based Advance India Projects Ltd (AIPL), primarily for construction finance. AIPL has five projects under construction including AIPL Joy Central, a four-acre, mixed-use development in Gurugram comprising commercial and retail development along with a multiplex.
“This transaction is representative of our intention to partner with strong developers in the commercial space and lending on a flexible structure to meet the requirements of the project and the market. I am pleased to have strengthened our relationship with the AIPL Group,” said Khushru Jijina, managing director, Piramal Finance Ltd.
Piramal had extended a Rs. 120 crore loan to AIPL in December 2016 against AIPL Business Club, an information technology (IT) office project in Sector 62, Gurugram. In another transaction, Piramal had also invested Rs. 140 crore in AIPL Peaceful Homes, a residential project in Sector 70-A Gurugram, which has been entirely repaid.
Piramal Finance, one of the largest lenders and investors in real estate, started funding office projects in early 2016 on the back of a steady growth in the commercial office segment when a prolonged slump in residential sales continued. It has deployed and sanctioned around Rs. 5,000 crore in office projects as of end-October.