Piramal Group paid $ 2.2 billion for preferred Real Estate Partners

The real estate arm of Piramal Group Mumbai - Piramal Management Fund - has raised a Preferred Partner program Piramal $ 2.2 trillion earlier this week. Under this plan, the funding limits for selected developers pre-sanction partners. Funds will be used for everything from the early stage equity to finance the construction.

Khushru Jijina, managing director of Piramal Fund Management Private Limited provides details on this program in the following Q & A

Have you identified the preferred partners?

Yes we have and we will be communicating with them formally in the next 15 days. But that constantly seeks to improve and add to the list.

What will be split between commercial and residential properties?

It is too early to split across asset classes, but according to our overall portfolio are more biased towards housing finance.

What is the time frame you are looking at loan?

We believe that this initial corpus of $ 2.2 billion is likely to be used during the next period of 18 months.

W hat are your criteria for choosing preferred partners?

There are a number of criteria to look. These include developer track record, execution capability and balance sheet strength and, of course, the scope and nature of their relationship with us. Most importantly, however, developers have to be grade A and must have an existing relationship with Piramal Fund Management through at least two existing operations. This is meant to be a selective program to establish the longest tenure and deeper relationships with our choice of level 1 to developers via our target markets.

What was the reason for entering this program?

We are proactively reaching our choice of developers and allowing the pre-sanctioned order to pursue transactions limits. We believe this consolidation phase has started in the industry will benefit from the strongest brands for developers and armed with our pre-sanctioned limits will be in a higher position than their peers

Piramal Fund would take a stake in any of the properties that lends itself?

The nature of the investment is likely to include all forms of financing, including pure and preferred varying structures, in addition to the guaranteed debt and structured highest level typical and traditional. Therefore, it is likely that we end up with shares in special purpose entities that carry out development. It is not our intention, however, to pursue transactions at the entity level with developers as ensuring always be specific project

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