BENGALURU : The booming real estate market in Bangalore, Chennai and Hyderabad had been attractive for developers for quite some time and Khushru Jijina, MD, Piramal Fund Management tells us that home grown developers in Bangalore, Chennai and Hyderabad are their strongest partners.
Piramal Fund Management Pvt Ltd (PFM). funding arm of the Piramal Group on Tuesday increased its footprint in South India by crossing Rs 10,000 crores in consolidated investments. Jijina also tells us that their promise at the beginning of the year to cross Rs 5000 crores in the real estate commercial space has been crossed.
PFM has been tying up with a number of tier 1 developers from Bangalore such as Prestige, Purvankara, Salarpuria, Mantri, Adarsh, Century, Ozone and SJR who are foraying into the other southern cities like Hyderabad and Chennai.
“Our total fund is Rs 32,000 crores at the moment which is a mix of disbursed and sanctioned, so on comparing this 10,000 to that figure, which is almost one third of our investment is going into these three southern metros,” he said.
“Bangalore is the biggest and most developed market among them and the difference between Hyderabad and the other cities is that investment is more in the commercial space here rather than residential,” he added.
Real estate developers in Chennai with whom PFM is actively underwriting transactions in multiple projects are Arun Excilo, Baashyam, VGN, Arihant and SPR. In Hyderabad Phoenix, Manjeera and Western Construction are the developers, who with the help of PFM, is foraying into areas beyond the city.Developers have the discretion to use the capital as pure equity, structured debt or as construction finance.
Jijina says, “We are diversifying in real estate which includes both residential and commercial and 52% of the fund right now comprises of construction finance. Last week we launched the Lease Rental Discounting with which we are targeting higher liquidity transactions than what traditional banks are able to offer.”