Moneycontrol
| Source: Housing.com/news

Piramal Fund Management okays two projects of Rs 1,020 crores, under flexi LRD scheme

Piramal Enterprises’ financial services division, Piramal Fund Management (PFM), has sanctioned two investments worth Rs 1,020 crores under its flexible lease rental discounting (LRD) scheme. The firm has approved Rs 440 crores for Wadhwa R

Piramal Enterprises’ financial services division, Piramal Fund Management (PFM), has sanctioned two investments worth Rs 1,020 crores under its flexible lease rental discounting (LRD) scheme. The firm has approved Rs 440 crores for Wadhwa Group’s commercial project in BKC in Mumbai, while the second investment is of Rs 580 crores against ASF Group’s IT SEZ development, ‘ASF Insignia’, in Gurgaon. With these two transactions, the company has so far sanctioned investments to the tune of Rs 2,000 crores, within three months of launching the LRD for completed commercial assets that include office and retail space.

Prior to these two transactions, PFM approved a flexi LRD with Reliable Group in Mumbai and Mantri Group in Bengaluru, which was also to the tune of Rs 1,000 crores. “In November last year, we announced our target for LRD to be Rs 10,000 crores for the next 12-15 months and we have already achieved 20% of it within three months of its launch. Through these transactions, we have further strengthened our relationship with the Wadhwa Group, an existing ‘Piramal Preferred Partner’, with whom we have done multiple investments in the past, as well as initiated a new relationship with the ASF Group,” Piramal Fund Management’s managing director, Khushru Jijina said.

See also: Piramal Fund to expand portfolio in commercial realty segment

He said PFM remains positively inclined towards commercial as an asset class and looks forward to actively scaling up the company’s position within this space. PFM has committed Rs 440 crores under a seven-year facility, with the proceeds being used towards a takeover of loans from existing lenders and to reduce the overall cost of funds for existing projects of the Wadhwa Group. The deal is secured against an exclusive mortgage of the project, of which 98% is leased, with charge for overall present and future receivables.

Wadhwa Group’s managing director Navin Makhija said, “PFM’s LRD offering will allow us to leverage our marquee projects and fund developments that we have in the pipeline. Our proven track record of completing projects on time and being financially viable, has allowed us to successfully partner with Piramal.” Wadhwa Group has delivered over 11 million sq ft of prime real estate of which 6 million sq ft is commercial real estate. PFM has committed Rs 580 crores for ASF’s Insignia SEZ, out of which Rs 435 crores has been disbursed. The ASF Group has so far delivered 3 million sq ft of IT and commercial assets.

By: Housing.com/news

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