Real estate developers Shriram Properties Limited (SPL) and ASK Property Fund (ASK) have announced a joint investment of Rs 206 crore to take up 100 percent development rights in an ongoing stressed project in Chennai.
The project will be acquired through SPL’s wholly-owned subsidiary, Shrivision Elevations Private Limited, and is being launched as Shriram 122 West.
SPL and ASK are making a joint investment towards the acquisition, and the project's working capital needs will be met separately. The investment is being made from the ASK Real Estate Special Opportunities Fund IV.
The project comprises about 1,900 residential apartments with a revenue potential of Rs 1,200 crore in the next five years.
Located in Mangadu, close to the Porur-Manapakkam IT cluster and the upcoming metro corridor, the project has a total saleable area of 1.9 million square feet (msf) spread across two phases.
Shriram 122 West is the second joint investment by the co-investment platform set up by ASK and SPL in November 2022, with an aggregate capital commitment of Rs 500 crore.
M Murali, Chairman and Managing Director of Shriram Properties, said that this is yet another successful stressed asset acquisition in recent months. The acquisition is value-accretive and will help SPL leverage its strong position in the micro market, he added.
"The co-investment platform’s maiden investment in Shriram Pristine Estates, a premium plotted development opportunity, is performing well, exceeding expectations on volume and pricing since its launch in February 2023. Collectively, between both projects, the platform has already utilised 60 percent of its committed capital," SPL said.
Additionally, it added that the companies are evaluating further opportunities to co-invest in plotted and residential development projects in Bengaluru, Chennai, and Hyderabad.
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