Shriram Properties raises Rs 40 cr from Kotak Group for Kolkata housing project

Realty firm Shriram Properties said it has raised Rs 40 crore from Kotak Group to develop a housing project in Kolkata.

Shriram Properties has entered into a partnership with Kotak India Affordable Housing Fund-I for development of its next phase of affordable housing project Shriram Grand 2, coming up as part of Shriram Grand City at Uttarpara in Kolkata.

Kotak India Affordable Housing Fund (KIAHF) will invest up to Rs 40 crore towards 50 per cent economic interest in the proposed development of Shriram Grand 2.

KIAHF is an affordable housing fund that is managed by Kotak Investment Advisors and has CDC Group, a development finance institution owned by the UK government, as an anchor investor.

Shriram Grand 2 is an affordable housing project with over 3,000 units and aggregate saleable area of over 2.1 million sq ft. This project is being launched in 2019, as part of Shriram Grand City, an integrated township with over 33 million sq ft of saleable area under development.

As part of the integrated township, Shriram Properties is already developing Shriram Grand 1 comprising of about 2,300 units with aggregate saleable area of around 2 million sq ft, substantial part of which is already sold.

"We are looking forward to taking this partnership to next level and leverage each other's strengths in making Shriram Grand 2 a big success, while exploring opportunities for expedited development of Shriram Grand City as a whole," Shriram Properties CMD M Murali said.

"This investment is in alignment with our strategy of affordable housing fund with CDC Group, to invest in affordable housing projects with a developer of repute and proven capabilities. Affordable housing is the need of the hour in the country," S Sriniwasan, MD and CEO of Kotak Investment Advisors said.

Shriram Properties is one of the leading residential real estate development companies in South India, primarily focused on the mid-market and affordable housing categories in its core markets of Bengaluru, Chennai, Coimbatore, Vishakhapatnam and also Kolkata. It has completed about 12.86 million sq ft of saleable area across 25 projects, as of November 30, 2018.