Lifestyle

Piramal Fund to expand portfolio in commercial realty segment

[ecis2016.org] In a bid to expand its portfolio in the commercial segment, Piramal Fund Management, the financial services arm of the Piramal Group, has announced flexi lease rental discounting for completed projects

Piramal Group’s financial services arm, Piramal Fund Management (PFM), plans to expand its portfolio in the commercial segment, by offering flexi lease rental discounting (LRD) for completed commercial assets and is targeting a book size of Rs 10,000 crores by fiscal 2018.

You are reading: Piramal Fund to expand portfolio in commercial realty segment

PFM has identified an initial pipeline of transactions worth Rs 1,500 crores for two deals, with one each in Mumbai and Bengaluru, the company’s managing director, Khushru Jijina revealed.

Read also : RBI keeps lending rate unchanged at 6.25%

“It has been our constant endeavour to expand our portfolio and diversify into new areas of real estate. From being a construction finance and mezzanine fund provider for the residential segment, we forayed into the commercial segment. We now want to move a step forward and offer LRD for commercial projects, apart from providing construction finance,” he said.

PFM has been providing financial solutions for its development partners, with products such as Mumbai Redevelopment Fund, Apartment Fund, Piramal Preferred Partner, etc.

The company is targeting a portfolio of around Rs 10,000 crores, by fiscal 2018 for its new offering and will be looking at projects across six metros including Mumbai, Chennai, Bengaluru, Pune, NCR and Hyderabad.

Read also : What is ‘Undivided Share’ (UDS)?

[ecis2016.org] Commercial and office demand determine residential realty trends

“Owners of completed assets will be able to approach PFM, to raise significantly more flexible financing than they would otherwise be able to source from a bank. This offering is both, competitive and flexible and will also enable them to raise more money against the same asset when compared with traditional forms of LRD,” Jijina said.

Currently, out of the total portfolio, nearly 52% is towards construction financing which is majorly towards residential projects, while commercial is around 20%. “Going forward, by FY18, we wish to have a healthy mix of residential and commercial in the portfolio and within the two, a good mix of construction and mezzanine funding,” Jijina added.

Source: https://ecis2016.org/.
Copyright belongs to: ecis2016.org

Source: https://ecis2016.org
Category: Lifestyle

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button