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Piramal Capital and Housing Finance will work on turning around stressed assets in the housing sector through last-mile partnerships.
The company will facilitate tie-ups between stressed residential developers and other financially sound ones who can take up these unfinished projects and complete them, said Khushru Jijina, Managing Director, on the sidelines of an Indian Chamber of Commerce event here.
Piramal will try to bring in its own developers who will then go on to form joint ventures or marketing tie-ups, he added. It will then fund these “good developers”. The firm works with 140-odd developers in India.
“If we find a developer under stress, we will examine the land parcel. It could be either sold to our developer or developed jointly. We will not finance the distressed asset,” Jijina added.
Piramal Capital has so far lent close to ₹1,000 crore (to a new set of developers) for completion of four-five stressed projects, mostly in Mumbai. It will also look at projects in Delhi-NCR.
Parent company Piramal Enterprises, Jijina said, has entered into a partnership with Ivanhoé Cambridge, a real estate subsidiary of Caisse de dépôt et placement du Québec, Canada’s second largest pension fund, to provide long-term equity capital to residential developers. The partners will together invest about ₹2,260 crore.
Piramal Capital is also planning an aggregated REIT platform. “We are looking at an enterprise value of ₹3,000 crore for the REIT,” he said.
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