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Piramal Group auctions off its portfolio of distressed real estate loans

The Piramal Group is looking for buyers for its portfolio of foreclosed real estate properties which includes debts totalling to Rs 1,812 crore and unpaid security receipts of Rs 782 crores. Bids have been jointly requested for the real estate portfolios owned by Piramal Enterprises (PEL) and its subsidiary Piramal Capital & Housing Finance (PCHFL).

Ozone Holdings, Niraj Kumar Associates, ASF Insignia & Black Canyon SEZ, Bhoruka Power Corporation, and Gulam Mustafa Enterprises are included in the real estate loan portfolio of the company. It also contains security receipts produced by Omkara ARC and CFM Asset Reconstruction Company.The real estate projects are located in Mumbai, Pune, Bengaluru and Gurgaon.

The business has hired consultant company E&Y to help it resolve these assets. The financial company hasn't disclosed a reserve price for the assets but stated that it intends to launch an auction by the first week of June.

The loan book holds an outstanding loan from PCHFL of Rs 586 crores for the Ozone Holdings project in Bengaluru. The amount that Piramal is exposed to the ASF Group is Rs 561 crore including loans to the Insignia SEZ and the Black Canyon SEZ. PEL owes Rs 208 crore and PCHFL Rs 353 crore of the entire amount. The portfolio also comprises Rs 162 crores given to more than 10 real estate projects in Pune and Lonavala that were promoted by Niraj Kumar Associate (Montvert Group). This includes the Rs 121 crore in debt owed by PCHFL and the Rs 41 crore owed by PEL.

Additionally, Piramal has placed up for auction loans totalling to Rs 219 crores to Bhoruka Power Corporation and Rs 282 crores to Gulam Mustafa Enterprises. Piramal has requested bids for security receipts worth Rs 531 crore issued by Omkara ARC and Rs 251 crore by CFM ARC. Piramal previously sold debts given to Advantage Raheja Group to Omkara ARC and Paranjape Scheme Construction loans to CFM ARC. The ARCs made a partial payment to Piramal in cash and a partial payment in the form of security receipts due upon loan recovery.

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