Piramal Capital and Housing Finance is a completely owned subsidiary of the Piramal Enterprises. It has announced their plans to lend Rs. 10000 crores to the hospitality projects across the country. In addition to that, it has also announced an investment of Rs 650 crores for a hotel development firm in SAMHI hotels which are based out in Gurgaon.
According to the Managing Director of Piramal Capital, Mr. Khushru Jijina, he said that “We believe that this is an opportune time to target the hospitality sector with ‘intelligent’ capital. As the traditional lenders are unable to provide ‘holistic’ solutions, the expertise of our group and our presence across the capital stack enables us to cater to this industry with unique customized solutions and innovative structures”.
Added to that, Mr. Jijina said, “Over the past 6 months, the company has deployed beyond Rs. 2, 000 crores towards the hospitality sector as the company scale the offerings in to reach a target book size of Rs. 10,000 crores in the upcoming three years“.
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The chief executive officer of Anarock Capital, Mr., Shobhit Agarwal forenamed that, “The Indian hospitality sector has not just recovered from the slump (post the global financial crisis), but is once again beginning to register robust growth—growth which seems very sustainable over the coming years” and over a span of six months, Piramal Capital and Housing Finance has deployed around Rs. 2,000 crores in various hospitality firms.
This investment with the SAMHI group is counted to be the 3rd major investment in the hospitality sectors in the past few months. SAMHI is planning to utilize the funds to support the growth plans and also to refinance the present leaders across all the three different hotel assets. Those include The Sheraton in Hyderabad, Hyatt Regency in Pune and the Fairfield and Courtyard by Marriott in Bangalore.
SAMHI owns a total of 29 hotels and is backed by the Goldman Sachs. Previously, Piramal Capital and Housing Finance (PCHFL) has also invested Rs. 600 crores in a Gurgaon based Vatika Group for their Westin Sohna and Westin Gurgaon properties. Additionally, it has also invested in Advantage Raheja Group Rs. 600 crores for their properties in Pune which include Bangalore Plaza, JW Marriott, and Crowne Plaza.
PCHFL has also achieved more five transactions with a total of Rs,450 crore against five hotel assets (out of which three are operational and the remaining ones are in the final stage of construction and fit-out) operated by the top-tier brands such as Radisson, Hyatt, and Taj, across Hyderabad, Goa, Shimla and Bangalore. Of this, Rs.100 crore will be extended as last-mile funding towards completion of the first Taj Luxury Resort in Himachal Pradesh coming up in Theog, near Shimla, which is expected to be operational within the next six to nine months.
Ashish Jakhanwala, Founder, and CEO of SAMHI Group said “We continue to see accretive acquisition opportunities in the hotel sector and we are perhaps best positioned to take advantage of these. We have found, in Piramal, a partner of choice given their unique understanding of the sector coupled with their ability to provide flexible and targeted funding that allows us to pursue growth while maintaining the right capital structure.”
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