Piramal Fund Management looks to commit Rs 15,000 crore for new financing plan

MUMBAI: Piramal Fund Management — Piramal Group’s realty investment arm — is looking to commit Rs 15,000 crore in the first phase of its new programme, Piramal Preferred Partner. Under this plan, Piramal Fund Management intends to pre-sanction funding limits for its selected existing tier-I developer partners to pursue acquisitions, said a top official of the fund.

The facility will be extended to developers who have the balance sheet strength and execution capability required for the intended end use. The funding limit, which would be reset on a periodic basis, will depend on project and organisation-specific parameters.

"Consolidation has started in the real estate sector and developers are looking for opportunities. A pre-approved financing would allow our existing developer partners to be able to focus on originating the best transactions available in this market," Khushru Jijina, MD, Piramal Fund Management, told ET.

"In the first phase, about 8-10 developers will get total commitments worth Rs 15,000 crore from us. We have already identified developers in Mumbai, Bengaluru, Pune, Chennai and NCR for this." The sanctioned amount can be used by realty developers as pure equity, structured debt or even construction finance depending on their requirement.