MUMBAI (Reuters) - Piramal Fund Management Ltd, a unit of Piramal Enterprises Ltd, will invest up to 50 billion rupees($803 million) before March 2016 to finance construction projects, its managing director said on Tuesday.
“We are looking to expand the construction finance portfolio. This is less risky and this was the missing link in our portfolio,” Khushru Jijina, managing director of Piramal Fund Management, told Reuters.
The fund manager said on Tuesday it would invest 11 billion rupees to finance nine construction projects across major Indian cities. The projects are a mix of late-stage and mid-market residential developments, including at suburban locations, with a completion timeframe of 3 to 5 years, according to a statement by the company.
The projects are in Mumbai, Delhi, Bangalore, Pune and Chennai, Piramal Fund Management said.
The company will eventually expand financing to smaller cities such as Jaipur, Ahmedabad, Nagpur and Hyderabad, Jijina said.
Piramal Fund Management, which has a real estate finance joint venture with Canada Pension Plan Investment Board, manages $2 billion across various funds. It currently has separate funds for equity and structured finance.
($1 = 62.2800 rupees)
Reporting by Indulal PM; Editing by Biju Dwarakanath