Piramal Fund Management launches‘Indiareit Apartment Fund’
Piramal Fund Management has launched a new fund targeting buying of individual residential units–„Indiareit Apartment Fund' seeks to acquire residential units in Tier 1 markets at a significant discount to prevailing market price
The target fund size is INR350 cr(+a green-shoe option of a further INR350cr)with an average deal tenure of 2-3 years per transaction. IIFL Wealth Management Ltd. is acting as exclusive distributor for the first close.
The Fund is specifically targeted towards those individuals who, beyond a primary home, look to invest directly into real estate as an asset class. The Fund will therefore under write units only i.e. physical square feet rather than financial participation, whilst adhering to the basic tenets of a defined use of funds, appropriate security and monitoring as well as ensuring developer alignment and project completion–key risks that are tail buyer in the open market would want to address.
This all encompassing strategy helps create an aligned position i.e. a win-win for all stakeholders. For the developer, this enables them to advance construction and delivery of initial sales, facilitates an increase divisibility of site progress and also enables them, in certain instances, top anticipate in the upside beyond a certain price threshold. For the investor, the Fund enables them to access value deals in the market and participate in a secured position with the benefit of a highly attractive price point, diligence and structuring visa Vis an individual transaction. It also enables a quicker realization of attractive returns with smaller incremental price movement’s when compared with retail participation at open market prices.
The Fund has already seed edits first transaction, a INR 50 cr investment in Mumbai and has identified a further pipe line of similar transaction seven as the fund-raising progresses.
Khushru Jijina, Managing Director, Piramal Fund Management said, “This Fund has been formed over many months of conceptualization and structuring. We are extremely heartened with the response having collected INR100cr in a matter of days. This offering adds to our existing bouquet of services i.e. structured equity, senior debt, and construction finance and furthers our engagement with development partner’s to meet their requirements.”
About Piramal Enterprises Limited:
Piramal Enterprises Limited (PEL) is one of India's largest diversified companies, with a presence in pharmaceuticals, healthcare information managementand financial services. PEL's consolidated revenues were~$750 million in FY2014. In the pharmaceutical space, PEL is one
Of leading custom manufacturing player globally, has presence in the global critical care segment with a portfolio of inhalation and injectable anesthetics and its OTC business is ranked no.7 in India. PEL is also engaged in drug discovery & research and has strong pipeline of development products. PEL's information management business, Decision Resources Group, is a leading provider of information based services to the healthcare industry. In the financial
Services space, PEL, through Piramal Fund Management, provides comprehensive financing solution store ale state companies. Its Structured Investments Group provides mezzanine funding to corporate in various sectors, including infrastructure. PEL has also made long term equity investments in the Shriram Group, a leading financial conglomerate. For further information,