[ecis2016.org] Piramal Finance has announced the setting up of a dedicated team, to invest in affordable and mid-income residential projects, with an initial investment target of Rs 3,000 crores
Piramal Finance Limited (PFL), a subsidiary of Piramal Enterprises Limited (PEL), has set up a dedicated team to invest in affordable and mid-income residential projects, across the major metros in India.
You are reading: Piramal Finance targets affordable and mid-income housing segments
PFL has identified an initial pipeline of Rs 3,000 crores, with transactions across the major metros under active consideration. PFL has said that it will follow a partnership approach, for its investments in the affordable housing space.
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The investments are likely to be across the entire capital stack. PFL could provide both, pure and preferred equity capital to top-grade developers that are looking to buy or develop land and need early-stage capital. PFL may also acquire land on its own accord and invite developers to participate, on a joint development basis. At the same time, PFL may sanction milestone-linked construction finance for the project, so that the developer is able to achieve financial closure for the project.
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Additionally, through PFL’s sales and research function Brickex, the developer can leverage a multi-channel distributor and broker network, to identify a marketing strategy and incentivise a community of partners that will further drive primary sales.
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With typical end-users in the affordable and mid-income housing segments belonging to the salaried class and self-employed individuals, Piramal Housing Finance also plans to fund individual home buyers through a range of products focused on the affordable segment.
Speaking about the setting up of this dedicated team, Khushru Jijina, managing director of Piramal Finance Limited and Piramal Housing Finance Limited said, “While many players in the market are focused on providing equity or debt capital towards affordable and mid income housing, we believe that our ability to provide a comprehensive end-to-end solution, including early stage equity, as well as construction-linked debt, is truly unparalleled as it helps the developer achieve financial closure for the project on day zero.
Our ability to further drive sales through Brickex and fund those sales through customised home loan products, specifically tailored towards salaried and self-employed end-users, acts as unique competitive advantage. We now have a highly experienced team focused exclusively on scaling our presence within this segment and intend to scale up to USD 2 billion by 2020.”
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Source: https://ecis2016.org
Category: Lifestyle
