Bengaluru-based real estate developer Shriram Properties Limited has signed a Memorandum of Understanding (“MoU”) with ASK Property Fund for setting up an investment platform for the acquisition of residential real estate projects in Bengaluru, Chennai, and Hyderabad.
The companies will co-invest in plotted and residential development projects across the three cities. The platform will receive cumulative pledges of up to Rs 500 crore, and the capital will be deployed over the following 12 months. ASK will invest through its managed Category II AIF.
Chief managing director (CMD) of Shriram Properties, Murali M, said, “We are excited to join hands with ASK, who have been an exceptional and long-standing partner for us. The partnership platform will provide committed capital availability and allow us to seize new opportunities for further growth and value creation efficiently."
Shriram and ASK have already committed their first investment under the new platform for a plotted development project in northern Bengaluru.
The platform would invest up to Rs 125 crore in the acquisition and development of this project, which already has the necessary approvals and also partially completed infrastructure development.
The proposed project, which has a saleable area of roughly 8 lakh square feet, is scheduled to start in Q3 of FY23.
Previously, Shriram and ASK have worked on the development of a residential apartment project called “Shriram Chirping woods” at Sarjapur Road, Bengaluru. ASK exited the investment in 2020.
Amit Bhagat, chief executive officer (CEO) & managing director (MD), ASK Property Fund said, “With Shriram Properties, we have created a unique real estate investment platform that combines deep local market knowledge with risk expertise to achieve desired results for our clients and investment partners. We continue to build on our decades-long expertise in real estate and asset management.”
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