Piramal Fund Management forays in Ahmedabad with Rs 225-crore investment

Ajay Piramal-led Piramal Fund Management has invested total Rs 225 crore in a realty project of developer Ganesh HousingBSE 6.92 % Corporation. The real estate investment platform of Piramal Enterprises has invested in the project spread over 10 acres in Ahmedabad through debt. 

The transaction marks Piramal Fund Management's foray into Ahmedabad and any tier II city. The fund has so far been focusing on top five property markets including Mumbai, Pune, Bangalore, National Capital Region and Chennai. 

Apart from our investment focus in on top five cities, we will also be looking at tier II cities with prominent markets like Ahmedabad, Kolkata, Nagpur, Nashik, Coimbatore and Jaipur," Khushru Jijina, MD, Piramal Fund Management told ET. "Our decision to expand our target geographies was based on a great deal of research in potential target locations and we found Ahmedabad to be a viable destination for investment and look forward to expanding our presence over time." 

The fund has invested around Rs 200 crore in the project to support Ganesh Housing's acquisition of the land parcel situated close to Surdhara Circle in Thaltej, Ahmedabad, while Rs 25 crore have been sanctioned as working capital for the project. 

The project is estimated to have total development potential of 1.8 million sq ft of saleable area. It will be developed as a mixed use project with a combination of 12 residential towers coupled with both commercial as well as a high street retail component. 

The deal has been structured as a fixed return investment of over 18% with appropriate security and control mechanisms in place. The project is expected to be completed in the next five years, which is also the tenure of the debt. 

Piramal Fund Management's structured investments division invests in various sectors including infrastructure and total funds under management under these businesses are around $2 billion. Piramal Fund also has strategic alliances with pension funds like CPPIB Credit Investment and APG Asset Management. 

Source: EconomicTimes

Piramal Fund sanctions Rs 1,200 crore for real estate project by Omkar Realtors

                                

Piramal Fund Management (PFM) on Monday said it sanctioned Rs 1,200 crore in financing for a high-end residential project being developed by Omkar Realtors in Mumbai.

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, PFM said in a statement in the financial capital.

The Fund, a unit of Ajay Piramal-led Piramal Enterprises, claimed it was one of the biggest realty project finance transactions in recent times.

Omkar 1973' is the flagship property of the city-based realtor involving three high rise towers coming up on a nine-acre land parcel in Worli, Central Mumbai.

Over 4 lakh sq ft, or 60 per cent of the under-construction project, has already been booked, the statement said, adding the builder was targeting for a delivery in 2017.

"The construction finance component of our transaction will be utilised towards funding interim construction costs and is further secured by both the 80 per cent receivables from the area sold as well as a substantial portion of additional area retained as security on a exclusive basis," Piramal Fund Management said, explaining the deal's structuring.

PFM Managing Director Khushru Jijina called it a novel structure which involves a combination of senior debt and secured project funding.

Piramal Enterprises also has interests in private equity investments in real estate and developing land banks, among other areas.

Source: IndiaTimes