Piramal Group and IIFL Wealth Management Limited have joined hands on an Alternative Investment Fund (AIF) platform for funding select advance stage / last-mile real estate projects around Tier 1 cities in India.
With a target size of Rs 2,000 crores, this AIF, will be utilised to offer capital to Tier 1 developers in the key markets. Today, the market gives several opportunities for last-mile finance around the projects that need a minimum amount of gap funding for completion.
Piramal Group is not new to this domain as it has a long-standing track record of both primary development and wholesale funding across real estate. It also has a fiduciary fund management business around multiple funds and mandates across structured, preferred and pure equity.
IIFL Wealth is one of India’s leading wealth managers today, with assets of nearly Rs 1,70,000 crores under management, advice and distribution. Headquartered in Mumbai, IIFL Wealth Management has over 950 employees and presence in six major global financial hubs and 23 locations in India.
Khushru Jijina, Managing Director, Piramal Capital & Housing Finance Ltd said, “The creation of this AIF is in line with Piramal Group’s strategy to build newer platforms for co-lending with liked-minded reputed institutions. We will initially seed the fund with existing loans from Piramal Group’s portfolio while continuing to explore quality deals from the market in future.”
With this, Piramal will also be facilitating external capital (on a fund or co-investment basis) alongside its lending business. This will enable Piramal Group to continue to further grow the lending business through a new co-investment / co-origination model.
Karan Bhagat, Founder, MD & CEO, IIFL Wealth Management said, “Piramal’s deep domain expertise in real estate and IIFL Wealth’s ability to seize the best market opportunities have resulted in well-structured investment idea which will provide clients an ideal risk-adjusted return.”