Private equity major TPG Capital is taking 15% stake for $100 million (Rs 450 crore) in Bangalore-based real estate developer Shriram Properties, the realty arm of Shriram Group, South India’s diversified business group. The deal would value Shriram Properties at over $650 million or nearly Rs 3,000 crore, according to various newsreports.
VCCircle had first reported last year (See Our Earlier Report) that Shriram Properties was close to clinching a $100 million investment from TPG Capital. Shriram Properties is expected to use the funding to foray into hospitality and IT Parks, besides expanding its base in the residential space. The funding is also expected to be used for inorganic expansion opportunities.
TPG Capital already has an exposure to the group with investments in Shriram Retail Holdings and Shriram City Union Finance. TPG also partnered with Shriram Group to buy debt-ridden Vishal Retail earlier this year.
Shriram Properties — which has raised funding from Walton Street Capital, Starwood Capital and Sun Apollo at project levels in the past — has projects under development in cities like Bangalore, Chennai, Vishakhapatnam and Kolkata. Shriram Properties 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.
The firm forayed into mid-income housing last year and also raised Rs 40 crore from ICICI Prudential Asset Management Company Limited and India Opportunities Real Estate Fund (Mauritius) for its 16-acre residential project in Yelahanka, the northern suburb of Bangalore, at the SPV level.