Shriram Properties and ASK Property Fund have announced a joint investment of Rs 206 crore towards 100 percent of development rights in an ongoing project in Chennai, through a wholly-owned subsidiary, Shrivision Elevations. The Project acquisition formalities were completed and is being launched as “Shriram 122 West” shortly.
The Project is located in Mangadu, in close proximity to the Porur — Manapakkam IT cluster and the upcoming metro corridor. With a total saleable area of 1.9 million square feet spread across two phases, the Project has an aggregate revenue potential of Rs 1,200 crore in the next five years.
The Project comprises 1,900 residential units, predominantly targeting the mid-income group. Shriram and ASK are making a joint investment of Rs 206 crores towards the acquisition, and the project working capital needs will be met separately. The said investment is being made from the ASK Real Estate Special Opportunities Fund IV. Shriram 122 West is the second joint investment by the co-investment platform set up by ASK & Shriram in November 2022, with an aggregate capital commitment of Rs 500 crore.
As per company, the co-investment platform’s maiden investment in Shriram Pristine Estates, a 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 utilised 60 percent of its committed capital already. Partners are evaluating further opportunities to co-invest in plotted and residential developments projects in Bengaluru, Chennai, and Hyderabad.
Commenting on the development, M Murali, Chairman & Managing Director, Shriram Properties says, “This is yet another successful stressed asset acquisition in recent months. The acquisition is value accretive and will help us leverage the strong position in the micro market.”
The real estate market of Chennai is now experiencing exceptionally favourable conditions, with record-high absorption and the lowest inventory overhang in years. “We are evaluating opportunities in recapitalization space or acquisition of value projects under the platform,” says Lakshmipathi Chockalingam, Managing Partner – South of ASK Property.
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