Piramal Capital & Housing Finance Limited (PCHFL), a completely owned subsidiary of India-based Piramal Enterprises, has announced an investment of Rs6.5bn ($74.6m) in Samhi Group, which owns 29 hotels.
With this structured debt investment, Samhi Group will be able to support its growth plans and refinance current lenders across its assets – The Courtyard and Fairfield by Marriott in Bangalore, the Sheraton in Hyderabad and the Hyatt Regency in Pune.
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By GlobalDataIn the last six months, this is the third major investment made by PCHFL in the hospitality sector.
Earlier, PCHFL had invested Rs6bn ($74.6m) with Vatika Group – against the Westin Gurgaon and the Westin Sohna, and Rs6bn ($74.6m) with Advantage Raheja Group – against the JW Marriott in Bangalore and the Crowne Plaza in Pune.
All these loans are against operational assets.
PCHFL has also completed five other deals worth Rs4.5bn ($55m) against five hotel assets. Of these assets, three are currently operational while two are in final stages of construction. These assets are operated by brands such as Taj, Hyatt, Radisson, etc., in Bangalore, Hyderabad, Shimla and Goa.
An amount of Rs1bn ($12m) will be extended as last mile funding for the completion of the first Taj Luxury Resort in Theog, near Shimla, Himachal Pradesh
This is a 99 key full service five star luxury resort constructed in around five acres and is slated to become operational within the next six to nine months.
Piramal Capital & Housing Finance managing director Khushru Jijina said: “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, 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. Our ability to act as a catalyst between owners and operators alike further adds to our distinct competitive advantage over others.”
Samhi Group founder and CEO Ashish Jhakanwala said: “We continue to see accretive acquisition opportunities in 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.”
