Shriram Properties (SPL) and ASK Property Fund on August 23, 2023, announced a joint investment of Rs 206 crore towards 100% development rights in an ongoing residential project in Chennai. SPL has participated in this joint venture through its wholly owned subsidiary, Shrivision Elevations. The project acquisition formalities have been completed and it will soon be launched as Shriram 122 West.
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 foot (msf) spread across two phases, the project is expected to generate a revenue of Rs 1,200 crore in the next five years. Shriram 122 West comprises approximately 1,900 residential units, predominantly targeting the mid-income group (MIG).
Shriram 122 West is the second joint investment by the co-investment platform set up by ASK and Shriram Properties in November 2022, with an aggregate capital commitment of Rs 500 crore. The co-investment platform’s first investment in the plotted development project Shriram Pristine Estates was launched in February 2023. Between both projects, the platform has already utilised 60% of its committed capital. Partners are evaluating further opportunities to co-invest in plotted and residential developments projects in Bangalore, Chennai and Hyderabad.
M Murali, chairman and managing director, Shriram Properties, said, “The acquisition is value accretive and will help us leverage the strong position in the micro market.”
Lakshmipathi Chockalingam, managing partner- South, ASK Property Fund, said, “This is our second deal under the co-investment platform and our third project partnership with Shriram Properties. 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 recapitalisation space or acquisition of value projects under the platform”.
