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piramal: Piramal puts stressed realty loan portfolio on the block

Piramal Group is seeking buyers for its distressed real estate portfolio comprising loans amounting to ₹1,812 crore and outstanding security receipts of ₹782 crore, two people aware of the development said.

Piramal Enterprises (PEL) and its subsidiary Piramal Capital & Housing Finance (PCHFL) have jointly invited bids for their real estate portfolios.

Piramal declined to comment on the development.

Its real estate loan portfolio comprises Ozone Holdings, Niraj Kumar Associates, ASF Insignia & Black Canyon SEZ, Bhoruka Power Corporation, and Gulam Mustafa Enterprises. It also includes security receipts issued by CFM Asset Reconstruction Company and Omkara ARC.

The real estate projects are spread across Mumbai, Pune, Bengaluru and Gurgaon, one of the persons cited above said.

The company has appointed EY to assist it in resolving these assets, the same person said.

The finance company has not indicated a reserve price for the assets but stated that it plans to invite bids by the first week of June.The loan book has an outstanding loan of ₹586 crore for Ozone Holdings’ project in Bengaluru provided by PCHFL.

Piramal’s exposure to ASF Group stands at ₹561 crore, which includes loans to Insignia SEZ and Black Canyon SEZ. Out of the total, PEL’s debt is ₹208 crore and PCHFL’s is ₹353 crore.

The portfolio also includes ₹162 crore provided to over ten real estate projects promoted by Niraj Kumar Associate (Montvert Group) in Pune and Lonavala. This includes PEL’s debt of Rs 41 crore and PCHFL’s debt of ₹121 crore.

Piramal has also put on the block ₹219-crore loans to Bhoruka Power Corporation and ₹282-crore loans to Gulam Mustafa Enterprises.

Piramal has invited offers for ₹251 crore security receipts issued by CFM ARC and ₹531 crore issued by Omkara ARC.

Piramal had earlier sold loans given to Paranjape Scheme Construction to CFM ARC and Advantage Raheja Group loans to Omkara ARC.

The ARCs paid part payment to Piramal in cash and part as security receipts payable on recovery of loans.

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