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Early this week, Ajay Piramal group merged its real estate private equity business and its non banking finance company under Piramal Fund Management. In an interview, Khushru Jijina, Managing Director, Piramal Fund Management discusses the rationale behind the merger and the entity's plans.
Why did you went for merger of Indiareit and Piramal Finance?
Both firms have invested in five cities and invested in common developers. We thought we can draw common synergies by merging the two and have a single relationship manager for the investee companies. We can take faster decisions now.
Do you think you will invest faster with this move?
Yes. We have already invested Rs 2,400 crore under the combined entity in the last three months. Piramal Finance had a loan book of Rs 1,900 crore in last March. But in the last three months alone, we lent Rs 2,000 crore.
There have been reports that you are looking to launch a new domestic fund and almost shelved the plans of an offshore fund. your comments.
We raised Domestic fund V of Rs 1,000 crore and already deployed 43% of that, In the next six months, we will exhaust that. After that, we will launch fund VI which will have a corpus of Rs 750 crore. As of now it will be residential. But if things pick up in commercial, we will look at both the asset classes.
As for the offshore fund goes, we want to stabilise CPP (Canada Pension Plan) platform before going for an offshore fund. We will go for an offshore fund in the next 4-6 months. We will announce first deal under this platform soon.
Any other plans?
We will come out with an unique fund soon
How do you look at residential and commercial property markets?
Prices will not run up but sales velocity will improve. Commercial will pick up slowly. We are cautiously optimistic on commercial.