Aimed at providing higher liquidity to developers, Piramal Fund Management has launched Flexi Lease Rental Discounting for completed commercial assets that include office and retail space.

PFM has identified an initial pipeline of transactions worth Rs 1,500 crore and intends to scale up to a book size of Rs 10,000 crore by FY 2018.

With the launch of Flexi LRD, PFM is targeting higher liquidity transactions than what the traditional banks offer, along with added flexibility for developers in terms of both serving and repayment. Owners of completed assets will, therefore, be able to approach PFM to raise significantly more flexible financing than they would otherwise be able to source from a bank.

Khushru Jijina, Managing Director, Piramal Fund Management said, “We believe that we are in the business of forging strong relationships on the back of our ability to act as a provider of perpetual capital and have been working on perfecting this structure for many months. By introducing this innovative form of Flexi LRD, we are targeting owners and holders of marquee assets and offering them a form of finance that is both competitive and flexible, whilst enabling them to raise more money against the same asset when compared with traditional forms of LRD.”

Piramal Fund Management, the wholesale fund and funding arm of the Piramal Group, focuses on real estate (addressing funding across the entire capital stack ranging from early stage private equity to senior secured debt and even construction finance) as well as non-real estate (Structured Finance Group i.e. operating infrastructure, renewables, and any other non-real estate sector).

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