Piramal Fund Management crosses Rs 10,000 crore in consolidated investments

29 Dec 2016 CW Team

Piramal Fund Management (PFM) has surpassed Rs 10,000 crore in aggregate investments from the proprietary book of Piramal Enterprises in South India. This milestone has been aided by a focused approach in treating Bengaluru, Hyderabad and Chennai as a single region, where synergies can be drawn from both existing and new relationships with Tier-1 developers, and by leveraging its ability to sanction large deals across the capital stack (Example: Adarsh Group - Rs 1,000 crore, Ozone Group - Rs 1,050 crore).

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 per cent CAGR in the last two years. Building on the complementarities that exist in both marketing and execution across the region, a number of Tier-1 developers from Bengaluru such as Prestige, Purvankara, Salarpuria and Mantri, have forayed into Chennai and Hyderabad. As a natural progression and extending the existing relationships with many of these Tier-1 developers, PFM is actively underwriting transactions across multiple projects with the same developers who have now entered other cities in south.

Khushru Jijina, Managing Director, Piramal Fund Management, said, “Piramal Fund Management is committed to enabling liquidity in the ecosystem and as markets consolidate, we will extend our partnerships in South India by underwriting multi-city portfolios with existing and new Tier-1 developers. We have consistently increased our exposure across Bengaluru, Chennai and Hyderabad over the past few quarters. Consolidation is a healthy sign which will make the end users recognise Tier-1 developer’s track record and execution capabilities.”

“It has been a great experience working with Piramal Fund Management. They are one of the first fund managers in the country that have the foresight to provide customised funding solutions. Khushru Jijina and his team have exceptional insight and expertise due to their experience in the field. They are innovative, ahead of the market and very reliable partners. I would personally and highly recommend PFM to the Real Estate Sector,” said Bijay Agarwal, Managing Director, Salarpuria Sattva Group.

“Our relationship with PFM is fairly new and we are thoroughly impressed with their professionalism, practical decision making approach stemming from the understanding of specific requirements of developers and their speed in closing transactions. My personal interaction with Khushru Jijina has been extremely positive and I am thrilled by his proactive approach towards building relationships. We look forward to a long and mutually beneficial association with PFM as we continue to develop the South region,” said Sushil Mantri, Managing Director, Mantri Developers

PFM’s exposure in the south extends across both the residential as well as the commercial segment including a recently launched flexible Lease Rental Discounting (LRD) product as well as customisd funding for plotted land developments. The first phase of the Piramal Preferred Partner program, under which a Rs15,000 crore line of credit was extended to select developments has been 50 per cent utilised at this stage and a second phase is likely to be launched in FY17 targeting, among others, selected developers in South India.

Piramal Fund Management (PFM) has surpassed Rs 10,000 crore in aggregate investments from the proprietary book of Piramal Enterprises in South India. This milestone has been aided by a focused approach in treating Bengaluru, Hyderabad and Chennai as a single region, where synergies can be drawn from both existing and new relationships with Tier-1 developers, and by leveraging its ability to sanction large deals across the capital stack (Example: Adarsh Group - Rs 1,000 crore, Ozone Group - Rs 1,050 crore). 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 per cent CAGR in the last two years. Building on the complementarities that exist in both marketing and execution across the region, a number of Tier-1 developers from Bengaluru such as Prestige, Purvankara, Salarpuria and Mantri, have forayed into Chennai and Hyderabad. As a natural progression and extending the existing relationships with many of these Tier-1 developers, PFM is actively underwriting transactions across multiple projects with the same developers who have now entered other cities in south. Khushru Jijina, Managing Director, Piramal Fund Management, said, “Piramal Fund Management is committed to enabling liquidity in the ecosystem and as markets consolidate, we will extend our partnerships in South India by underwriting multi-city portfolios with existing and new Tier-1 developers. We have consistently increased our exposure across Bengaluru, Chennai and Hyderabad over the past few quarters. Consolidation is a healthy sign which will make the end users recognise Tier-1 developer’s track record and execution capabilities.” “It has been a great experience working with Piramal Fund Management. They are one of the first fund managers in the country that have the foresight to provide customised funding solutions. Khushru Jijina and his team have exceptional insight and expertise due to their experience in the field. They are innovative, ahead of the market and very reliable partners. I would personally and highly recommend PFM to the Real Estate Sector,” said Bijay Agarwal, Managing Director, Salarpuria Sattva Group. “Our relationship with PFM is fairly new and we are thoroughly impressed with their professionalism, practical decision making approach stemming from the understanding of specific requirements of developers and their speed in closing transactions. My personal interaction with Khushru Jijina has been extremely positive and I am thrilled by his proactive approach towards building relationships. We look forward to a long and mutually beneficial association with PFM as we continue to develop the South region,” said Sushil Mantri, Managing Director, Mantri Developers PFM’s exposure in the south extends across both the residential as well as the commercial segment including a recently launched flexible Lease Rental Discounting (LRD) product as well as customisd funding for plotted land developments. The first phase of the Piramal Preferred Partner program, under which a Rs15,000 crore line of credit was extended to select developments has been 50 per cent utilised at this stage and a second phase is likely to be launched in FY17 targeting, among others, selected developers in South India.