Headquartered at Mumbai, the Piramal Fund Management Pvt. Ltd recently confirmed that it has sanctioned Rs 1,200 crore for Mumbai Realty Project. This is a high end residential project being developed by Omkar Realtors.

On this fund sanction for Mumbai Realty Project, the Piramal Fund Management reported in their statement that “Of the total commitment, Rs 400 crore will be used to refinance existing lenders, while the balance Rs 800 crore has been secured against a 20:80 scheme and is to be released in a staggered manner over the next two years as the project progresses.”

Khushru Jijina, Managing Director of PFM entitled this Mumbai realty project as a “novel structure”. According to him, this particular project involves or is a grouping of senior debt and secured project funding.

Spokesperson from Piramal Fund while explaining regarding the structure of the deal gave emphasis on utilization of the money, its security standards as well as the entire planning of the project. He further noted that a considerable portion of the supplementary area will be kept on hold for security purpose.

Piramal Fund Original Statement

“The construction finance component of our transaction will be utilized towards funding interim construction costs and is further secured by both the 80% receivables from the area sold as well as a substantial portion of additional area retained as security on a exclusive basis.”

On the other hand, Omkar Realtors who are going to develop the entire project are well determined towards it. Their most highlighted property entitled “Omkar 1973” involves high rise towers along with around 9 acre land in Worli, Central Mumbai area.