Piramal Fund Management has entered into an agreement to invest Rs 1,200 crore in the realty developer, Omkar Realtors & Developers' super luxury residential project, Omkar 1973, at Worli, in Mumbai.

The agreement is a novel structure with a combination of senior debt as well as project funding secured against a 20:80 scheme in a project that is established with around 60 per cent sales and visible construction progress.

The developer will utilise Rs 400 crore to part refinance its existing senior lenders against charge on the cash flows and development rights of the project. The balance Rs 800 crore will be debt secured against a 20:80 scheme and is intended to be drawn as a line towards construction progress over the next two years.

The Rs 1,200 crore is Piramal Fund Managment’s third investment in the Omkar 1973 project. Previously, the company had made an equity investment of Rs 200 crore in the project and extended debt of Rs 130 crore.

The Omkar 1973 project, with three high-rise towers, is spread over an area of nine acre, off Dr Annie Besant Road.