Piramal Fund Management (PFM), part of the Ajay Piramal-owned Piramal Group, is looking to invest as much as Rs 15,000 crore as pre-sanctioned loans to developers.
To begin with, such disbursements will be made to Piramal’s existing partners.
Khushru Jijina, managing director, Piramal Fund Management said that these funds will be available through all funding and financing options, which will include early stage equity to senior secured debt, construction finance and even a structured bulk purchase of individual units.
“These pre-sanctioned funding limits will allow our select real estate development partners to pursue opportunistic acquisitions without worrying about their external financing requirements which typically tend to distract them from the project specific underwriting. As a result of our pre-approved limits, the developers will be able to close their choice of transactions much faster,” Jijina said.
In terms of return on its investments, Jijina clarified that it will depend on the financial structure of specific deals, whether debt or equity, ranging between 12% and 20%.
The facility would be available to developers who have already demonstrated both the strength of balance sheet as well as the execution capability required for the intended end use. “The limit itself would also be arrived at keeping in mind various other organisation and project specific parameters and would be reset on a periodic basis,” he said.