Piramal Enterprises’ financial services division, Piramal Fund Management (PFM), has sanctioned two investments worth Rs 1,020 crore under its flexible lease rental discounting (LRD) scheme. The firm has approved Rs 440 crore for Wadhwa Group’s commercial project in BKC in the megapolis while the second investment is of Rs 580 crore 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 crore within three months of launching the LRD for completed commercial assets that include office and retail space.
Prior to these two transactions, PFM approved flexi LRD with Reliable Group in Mumbai and Mantri Group in Bengaluru which was also to the tune of Rs 1,000 crore. “In November last year, we announced our target for LRD to be Rs 10,000 crore for next 12-15 months and we have already achieved 20 per cent 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.
He said the 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 crore under a 7-year facility with 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 per cent is leased, with charge for overall present and future receivables.
Wadhwa Group 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 mn sq ft of prime real estate of which 6 mn sq ft is commercial real estate. PFM has committed Rs 580 crore for ASF’s Insignia SEZ, out of which Rs 435 crore is disbursed. The ASF Group has so far delivered 3 mn sqft of IT and commercial assets.