Piramal pushes Rs. 700cr in realty sector

In a major booster to the country's real estate sector, the financial services arm of Ajay Piramal-led Piramal Group, Piramal Fund Management, has recently deployed Rs 700-cr collectively for two commercial properties, Reliable Tech Park and Empire Towers in suburban Mumbai. The funding suggests a possible revival in demand for real estate despite demonetization that was seen as a dampener for the sector. The lender would release the fund in tranches as the projects near completion, managing director, Khusru Jijina, said adding that Reliable Tech Park and Empire Towers, together spread over 2.2 million sq ft at Airoli, are part of a complex called Cloud City Campus that extends to 2.7 million sq ft of leasable area. The proposed investment is in the form of flexible LRD (lease rental discounting) against 0.8 million sq ft, which has been fully leased, with the proceeds going towards completion of the remaining area, said official sources.