facebook-page-view
Advertisement

ICICI Pru, Realty Fund Invest Rs 40Cr In Shriram Project

By Boby Kurian

  • 09 Feb 2010

Deals in the property space are trickling in. Bangalore-based Shriram Properties Ltd, part of the diversified Shriram Group, has raised Rs 40 crore from ICICI Prudential Asset Management Company Limited and India Opportunities Real Estate Fund (Mauritius) for their 16-acre residential project in Yelhanka, the northern suburb of Bangalore.

With this investment, ICICI Prudential and the realty fund would hold a 49% stake in the Rs 280-project that is targeting the mid-income housing segment. Shriram Properties managing director M Murali told VCCircle that the project, Shriram Sahaana, with a built-up area of 1.2 million sq feet, will have 800 apartments in the price points of Rs 28 lakh to Rs 45 lakh. The project is approved and is under construction, he added.

o3 Capital were the exclusive bankers for the transaction.

Advertisement

Shriram Properties recently launched mid-income housing project where it plans to develop 7,000 housing units cities like Bangalore, Chennai, Visakhapatnam and Kolkata.

After a complete lull last year, the realty sector is now witnessing small-ticket deals particularly at the project or SPV level which is being seen as a de-risked model. An SPV level investment translates into easier and visible exits as each apartment or unit sold in the project amounts to partial exit, says a realty observer.

Shriram Projects has completed 4.23 million sq. ft. of residential space and 1.03 million Sq. ft. of commercial space, in addition to 67 million Sq. ft. of built-up area currently under various stages of development across Bangalore, Chennai, Vizag and Kolkata. Shriram has seen investments from Walton Street Capital, Starwood Capital Group & Sun Apollo in property development.

Advertisement

Share article on

Advertisement
Advertisement