Despite a sluggish real estate market, Piramal Fund Management has successfully made a ₹500-crore exit from Omkar Realtor and Developers’ residential project in Mumbai.
The real estate funding arm of Piramal Enterprises said it will make a couple of other exits worth ₹150 crore-₹200 crore within the next quarter. It is also looking to invest in the commercial segment, which has been showing signs of revival.
“We had invested ₹200 crore in Omkar’s 1973 project in Worli, Mumbai. The exit is valued at absolute returns of around 146 per cent, while annual returns are pegged at 24 per cent,” Khushru Jijina, MD, Piramal Fund Management, told
Jijina said the company had made the investment from its Domestic Scheme IV which was raised in June 2010.
Omkar 1973 is the first full exit for the fund.
“We had a corpus of Rs ₹922 crore which was deployed across eight transactions. Out of these, ₹106 crore has already been returned from three partial exits,” he added.
The investments were made between August and December 2011.
Jijina also added that “this cycle of exits from Fund IV will continue in the coming months.”
“With all the exit proceeds being distributed, Domestic Scheme IV will have returned more than 75 per cent of the fund corpus by December 2015,” Jijina added.
Piramal Enterprises has $1.2 billion assets under management.
Asked if the company was investing in residential or commercial, Jijina said a large corpus would be residential.
“We will also be looking at commercial assets as there is a revival in the category. Additionally, we are raising funds at a project level,” he added.