Real estate developer Shriram Properties Limited and ASK Property Fund, the alternate asset investment division of ASK group, have signed a Memorandum of Understanding (MOU) for setting up an investment platform for the acquisition of residential real estate projects. Under the new platform, the companies will co-invest in plotted and residential development projects in Bengaluru, Chennai and Hyderabad. Aggregate commitments towards the platform will be up to Rs 500 crores, and the capital is expected to be deployed over the next 12 months. ASK Property Fund will invest through its managed Category II AIF.
As per the MOU, Shriram Properties Limited and ASK Property Fund will make their first investment under the new platform for a plotted development project in north Bangalore. The platform will invest up to Rs 125 crores for the acquisition and development of the project that has the required approvals and partially completed infrastructure development. The proposed project will be launched during Q3 FY 2023, with a saleable area of nearly eight lakh square feet.
Shriram and ASK have earlier worked on a residential apartment project, Shriram Chirping woods, at Sarjapur Road in Bangalore. ASK exited from the investment in 2020.
Know about: How to rent villas in Hyderabad
Murali M, CMD of Shriram Properties, said, “The partnership platform will provide committed capital availability and allow us to seize new opportunities for further growth and value creation efficiently.”
Amit Bhagat, CEO and MD, ASK Property Fund said, “Investors continue to remain committed to real estate and investments are getting more broad-based with active participation across asset acquisitions. We have created the real estate investment platform that combines deep local market knowledge with risk expertise to achieve desired results for our clients and investment partners.”
