Em­bassy Group se­cures ₹650-cr loan from Pi­ra­mal Fi­nance

HT Estates - - FRONT PAGE - Mad­hurima Nandy mad­hurima.n@ht.com

BENGALURU: Pi­ra­mal Fi­nanceLtd, a sub­sidiary of Pi­ra­mal En­ter­prises Ltd, has­give­naloanof₹650 crore to Bengaluru- based Em­bassy Group.

The trans­ac­tion has been struc­tured like this: Em­bassy will in turn lend the money to its project part­nerMany­ataPro­mot­ers Pvt Ltd and a share­holder in Em­bassy Many­ata Tech Park, a prom­i­nent in­for­ma­tion tech­nol­ogy (IT) special eco­nomic zone (SEZ) in Bengaluru.

Reddy Veer­anna, chair­man and­manag­ingdi­rec­tor, Many­ata Pro­mot­ers, has26% share­hold­ing intheITSEZwhilethere­main­ing is with Em­bassy Group and global in­vest­ment firm Black­stone Group Lp.

“Cur­rently, Many­ataPro­mot­ers owe­saround ₹500 crore (loan plus added in­ter­est) to Black­stone and Em­bassy. This money from Pi­ra­mal will help in re­pay­ing the ex­ist­ing dues and­someof it will beusedas­growth­cap­i­tal,” said a per­son di­rectly fa­mil­iar with the trans­ac­tion, who didn’t wish to be named.

Em­bassy had filed an ap­pli­ca­tion for ap­proval­fromtheSe­cu­ri­ties andEx­changeBoard­ofIn­dia (Sebi) in Oc­to­ber 2016, for a real es­tate in­vest­ment­trust(Reit) list­ing. The pro­posed Reit port­fo­lio, which in­cludes Em­bassy Man- yata Tech Park along with other of­fice parks, is more than 25 mil­lion sq.ft in size and val­ued at ₹20,000 crore.

“We are pleased to have ex­tended our re­la­tion­ship with the Em­bassyGroupand­look­for- ward­toa­lon­gand­mu­tu­ally­ben­e­fi­cial as­so­ci­a­tion. I have al­ways ad­mired Jitu Vir­wani’s vi­sion, track record an­dex­e­cu­tion­ca­pa­bil­i­ties and we are happy to provide­themwith­cus­tomised­fi­nan­cial so­lu­tions as they scale up their pres­ence across both res­i­den­tial and com­mer­cial,” said Khushru Ji­jina, man­ag­ing di­rec­tor, Pi­ra­mal Fi­nance.

Reddy Veer­anna, chair­man and­manag­ingdi­rec­tor, Many­ata Pro­mot­ers, couldn’t be reached im­me­di­ately for com­ment.

In early 2016, Many­ata Pro­mot­ers raised ₹725 crore from fi­nan­cial ser­vices firms IIFL Group and Edel­weiss Group in a joint debt­trans­ac­tion. Edel­weiss, as­the­se­nior­len­der, loaned­about ₹450 crore, while the re­main­ing ₹275 crore was given by IIFL.

Many­ata Pro­mot­ers, along with realty firm Em­bassyGroup and in­vestor Black­stone Group Lp, used the money for its new plot­ted de­vel­op­ment­pro­ject­sand to also re­pay loans of ex­ist­ing in­vestors IFCI Ltd and Black­stone Group.

With the lat­est trans­ac­tion, Pi­ra­mal­haslen­ta­to­talofRs1,100 crore to Em­bassy Group and its part­ners across cities.

Ear­lier this year, Pi­ra­mal Fi­nance­len­tRs450crore­toa­joint ven­ture­be­tweenEm­bassyGroup andHy­der­abad’sPhoenixGroup, whichis­de­vel­op­ingth­ree­SEZsin Hy­der­abad, Mint re­ported in April. The­money­has­been­given in the form of con­struc­tion fi­nance to pro­cureap­proval­sand de­velop the SEZs, which will be built across 10 mil­lion sq. ft.

In the joint ven­ture­with­Phoenix Em­bassyTechZonePvt. Ltd, Em­bassy is an eq­uity part­ner, while Phoenix­pro­vides­the­land. Bothare in­volved in project con­struc­tion.

Em­bassyGroupis­apromi­nent com­mer­cial of­fice de­vel­oper which has de­liv­ered around 30 mil­lion sq.ft of of­fice space and 6 mil­lion sq.ft of pre­mi­um­res­i­den­tial de­vel­op­ments. The­firmhasa pipe­line of around17mil­lionsq.ft of com­mer­cial de­vel­op­ments across Bengaluru, Hy­der­abad and Chennai.

“We are de­lighted to be work­ing closely with a large diver­si­fied con­glom­er­ate like the Pi­ra­malGroup­whoisknown­for their struc­tur­ing ca­pa­bil­i­ties and quick turn­around time. We look for­ward­tolever­ag­ingth­eir ca­pa­bil­i­ties as we part­ner with them on our growth cap­i­tal re­quire­ments go­ing for­ward,” said Jitu Vir­wani, chair­man and man­ag­ingdi­rec­tor, Em­bassyGroup, ina state­ment.


De­vel­op­ers are bet­ting big on com­mer­cial of­fice space these days

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