PEL & APG Unite to Invest
Ajay Piramal forerunner Primal Enterprises (PEL) has combined with the world’s second-largest pension fund APG Asset Management (APG) to form a vital union necessary for investing a billion dollars in India’s infrastructure. The equally split joint venture of PEL and APG will involve the initial amount of $375 million from each side, and the investment target of $1 billion is expected to be achieved three years from now.
Hans-Martin Aerts, Director and Head of Infrastructure APG in Asia, feels that the new government is bound to bring with it a fresh wave of reformatory changes particularly to overcome policy inaction and other challenges that would ultimately lead to India’s infrastructure development and economic growth. He goes on to say that the Indian real estate market is currently at an inflexion point, perfect for direct and co-investments rather than fund investment, as APG will have both administrative and resource allocation powers. Aerts further adds that APG has been investing in India since 2008 and has an understanding of Indian spaces as well as international experiences that are valuable inputs for making a project successful.
Jayesh Desai, Co-head Structured Investments Group of Piramal Enterprises has spoken about how such partnerships are useful as both entities bring something critically substantial to the table. The objective is to build a sustainable, long-duration business relationship in investment and management, to the extent that the two can work as like-minded firms. He continues to add that the focus of the Joint Venture will be on mezzanine investment, while PEL will retain the duty of separately looking into the buyout strategy.
Source: The Economic Times
Ajay Piramal, APG Asset management, Hans-Martin Aerts, Investments Group of Piramal Enterprises, Piramal Enterprises
