Piramal Capital invests $95 mn in Goldman Sachs-backed SAMHI Group’s hotels
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Piramal Capital & Housing Finance Ltd (PCHFL), a wholly-owned subsidiary of the diversified Piramal Enterprises Ltd, said on Monday that it has invested Rs 650 crore ($94 million) in hotels owned by Gurugram-based hospitality firm SAMHI Group.

PCHFL said in a statement that the structured debt funding will help SAMHI Group with its growth plans and refinance existing lenders across three assets – The Courtyard and Fairfield by Marriott in Bengaluru, Sheraton in Hyderabad and Hyatt Regency in Pune.

The company said that all loans are against operational assets.

The deal marks PCHFL’s third investment in the hospitality sector over the past six months.

Before this, PCHFL had invested Rs 600 crore in the Gurugram-based Vatika Group (Westin Gurgaon and the Westin Sohna) and Rs 600 crore in Advantage Raheja Group (JW Marriott, Bengaluru and the Crowne Plaza, Pune).

PCHFL has also sealed five other transactions worth Rs 450 crore against five hotel assets which are operated by top-tier brands like Taj, Hyatt, Radisson, etc. across regions like Bengaluru, Hyderabad, Shimla and Goa.

Of this, the firm will provide Rs 100 crore as last-mile funding towards the completion of the first Taj Luxury Resort in Himachal Pradesh coming up in Theog, near Shimla.

“We believe that this is an opportune time to target the hospitality sector with ‘intelligent’ capital,” said PCHFL managing director Khushru Jijina.

“The industry is firmly on a path of growth, ably supported by both domestic and foreign tourism, has higher disposable income and is witnessing a general change in spending habits of target customers,” Jijina added.

The company has deployed Rs 2,000 crore towards the hospitality sector as it scales its offerings within this vertical to reach a target book size of Rs 10,000 crore in the next three years.

“We continue to see accretive acquisition opportunities in hotel sector and we are perhaps best positioned to take advantage of these,” said Ashish Jakhanwala, founder and chief executive officer, SAMHI Group.

SAMHI was founded by Jakhanwala and Manav Thadani in 2011. In 2016, US-headquartered investment firm Goldman Sachs had invested Rs 441 crore ($66 million at the time) in the PE-controlled hospitality firm for a minority stake.

Equity International, GTI Capital Group and International Finance Corporation had also invested in SAMHI Group.

PCHFL provides both wholesale and retail funding opportunities across sectors. In real estate, the platform provides housing finance and other financing solutions across the entire capital stack ranging from early-stage private equity, structured debt, senior secured debt, construction finance and flexi lease rental discounting.

The wholesale business in the non-real estate sector includes separate verticals- Corporate Finance (CFG) and Emerging Corporate Lending (ECL). CFG provides customised funding solutions to companies across sectors such as infrastructure, renewable energy, roads, industrials, auto components etc. while ECL focuses on lending towards Small and Medium Enterprises (SMEs).

PCHFL, through its group companies, provides customised strategies for institutional and retail investors such as Mumbai Redevelopment Fund and Apartment Fund (through Piramal Fund Management) and strategic partnerships with leading global pension funds such as CPPIB, APG and Ivanhoe Cambridge.

In June, PCHFL invested Rs 200 crore (around $30 million) in Chennai-based real estate firm Appaswamy Group via structured equity.

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