BENGALURU: Piramal Fund Management (PFM), the financial services arm of Piramal Group, has surpassed Rs 10,000 crore in aggregate investments from the proprietary book of Piramal Enterprises, in South India including Bangalore, Hyderabad, and Chennai.
The firm has invested in both existing and new relationships with tier 1 developers, and by leveraging its ability to sanction large deals across the capital stack. The fund invested in Adarsh Group Rs 1,000 crore, and Rs 1,050 crore in Ozone Group.
“We will extend our partnerships in South India by underwriting multi-city portfolios with existing and new Tier 1 developer. We have consistently increased our exposure across Bangalore, Chennai, and Hyderabad over the past few quarters,” Khushru Jijina, Managing Director, Piramal Fund Management.
PFM’s three-fold strategy to expand its product offerings, its portfolio companies, and its geographical reach, has enabled a steady growth of more than 80% CAGR in the last two years. Building on the complementarities that exist in both marketing and execution across the region, several tiers 1 developer from Bangalore such as Prestige, Purvankara, Salarpuria, and Mantri, have forayed into Chennai and Hyderabad.
We will actively do both equity and debt deal with the builders mentioned above over the next six months across the commercial and residential segment,” said Jijina.
PFM is actively underwriting transactions across multiple projects with the same developers who have now entered other cities in the south.
“Piramal Fund Management is one of the first fund managers in the country that have the foresight to provide customized funding solution,” said BijayAgarwal, Managing Director, Salarpuria Sattva Group.
PFM’s exposure in the south extends across residential and commercial segments including a recently launched flexible Lease Rental Discounting (LRD) product and customized funding for plotted land developments. The first phase of the Piramal Preferred Partner program, under which a Rs 15,000cr line of credit was extended to select developments has been 50% utilized at this stage and a second phase is likely to be launched in FY17 targeting, among others, selected developers in South India.
Source: ET Realty
