Piramal Capital & Housing Finance invested nearly ₹300 crore to fund the construction of a new villa development project by Cybercity Builders & Developers in Hyderabad, said people with direct knowledge of the matter.
Part of the funding will also go towards acquiring land that Cybercity Developers bought from Phoenix Group, the people said.
One of the subsidiaries of Phoenix Group had earlier purchased the land from erstwhile owner Gulf Oil India, a Hinduja Group company.
“The financing deal has been inked and the funds will be disbursed in tranches based on certain milestones or conditions precedent,” said one of the persons cited above.
Piramal Enterprises and Cybercity Builders & Developers didn’t respond to ET’s queries.
On Wednesday, Piramal Enterprises said it will be merging its wholly owned subsidiary Piramal Capital & Housing Finance, which will be subsequently renamed as Piramal Finance.
In the wholesale lending business, the company disbursed more than ₹1,448 crore in the March quarter including ₹967 crore in March. During the financial year ended March 31, the company received pre-payments worth ₹2,314 crore.
Institutional investors are sharpening their focus on residential projects, including villa and plotted developments, as they seek attractive opportunities in the realty sector. Such projects offer investors strong prospects for high returns, driven by growing demand for premium housing options and customised living spaces.
