Intends to pre-sanction funding limits for chosen Tier 1 developers to pursue acquisitions; targets funding commitments of INR 15,000cr in the first phase
Piramal Fund Management (“PFM”) has announced the ‘Piramal Preferred Partner’ program whereby it’s selected existing development partners are allowed to draw from a pre-sanctioned limit in order to pursue opportunistic acquisitions. PFM intends to commit an amount of INR 15,000cr in the first phase of this program to a select group of existing relationships.
By making capital available at an earlier stage, the developers would be able to focus on their core competence i.e. originating the best transactions available in this marketplace without worrying about their external financing requirements which typically tend to distract them from the project specific underwriting. As a result of our pre-approved limits, the developers will be able to close their choice of transactions much faster.
Naturally, this facility would be extended to a selective list of developers who have already demonstrated both the strength of balance sheet as well as the execution capability required for the intended end use. The limit itself would also be arrived at keeping in mind various other organization and project specific parameters and would be reset on a periodic basis.
In keeping with the platform’s philosophy, this line would be fungible across the entire suite of funding and financing options that the Platform is capable of extending – right from early stage equity to senior secured debt / construction finance and even a structured bulk purchase of individual units.
Khushru Jijina, Managing Director, Piramal Fund Management said, “This is a concept that was borne out of the relationship driven approach that we have always exhibited with our development partners. We were already prevalent across the entire capital stack and able to act as a perpetual provider of capital for multiple projects. By offering this facility, our development partners will always be able to demonstrate a competitive advantage as against their peer group.”