Pi­ra­mal Bets Big on Com­mer­cial Flexi Lease

Co sanc­tions .₹ 2K cr un­der flexi plan for 2 prime as­sets in Mumbai and NCR

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

Mumbai: Pi­ra­mal Fund Man­age­ment (PFM), the fi­nan­cial ser­vices divi­sion of Pi­ra­mal En­ter­prises, has sanc­tioned in­vest­ments worth about .₹ 2,000 crore within three months of launch­ing flexi lease rental dis­coun- ting (LRD) for com­pleted com­mer­cial as­sets, in­clud­ing of­fices and re­tail space. The com­pany re­cently ap­proved two in­vest­ments un­der Flexi LRD against two prime as­sets in Mumbai and the Na­tional Cap­i­tal Re­gion. The first in­vest­ment is of .₹ 440 crore against the Wad­hwa Group’s com­mer­cial prop­erty lo­cated in Mumbai’s busi­ness dis­trict of the Ban­dra-Kurla Com­plex. The sec­ond in­vest­ment is of .₹ 580 crore against ASF Group’s IT SEZ devel­op­ment —‘ASF In­signia’ in Gur­gaon. Prior to these, the fund had ear­lier ap­proved Flexi LRD trans­ac­tions with Re­li­able Group in Mumbai and Mantri Group in Ban­ga­lore.

“In Novem­ber 2016, we an­nounced our tar­get for LRD to be .₹ 10,000 crore for the next 12-15 months and we have al­ready achieved 20% of it within three months of its launch. We re­main pos­i­tively in­clined to­wards com­mer­cial real es­tate as an as­set class and look for­ward to ac­tively scal­ing up our po­si­tion within this space. The deal pipe­line is ro­bust and we may con­clude trans­ac­tions worth ad­di­tional .₹ 500-1,000 crore over the next 30-45 days,” said Khushru Ji­jina, MD, Pi­ra­mal Fund Man­age­ment.

Tak­ing its di­ver­si­fi­ca­tion strat­egy fur­ther, Pi­ra­mal Fund Man­age­ment re­cently ex­panded its port­fo­lio to of­fer Flexi Lease Rental Dis­count­ing (LRD). Through these trans­ac­tions, the fund will dis­count fu­ture cash flows of com­pleted and leased com­mer­cial as­sets in­clud­ing of­fice blocks and re­tail malls. Through this, it will be fi­nanc­ing the de­vel­oper up to 75% of the dis­counted cash flows from the prop­erty for up to 12 years. Pi­ra­mal Fund Man­age­ment has com­mit­ted ₹ 580 crore to­wards the ASF In­signia SEZ IT of­fice space on the Gur­gaon-Farid­abad road.

The 9.2-lakh-sq-ft build­ing is fully leased to ten­ants, in­clud­ing TCS, IBM and Eric­s­son. Out of this com­mit­ment, .₹ 435 crore has al­ready been dis­bursed.

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