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PE-backed Shriram Properties to acquire stressed residential projects

The company expects the value of such properties would be around 50 per cent of Shriram's portfolios in the next three-five years

T E Narasimhan  |  Chennai 

Shriram Properties, M Murali
M Murali, managing director, Shriram Properties

is looking to buy stressed with 50 per cent of its portfolio in the coming years. The arm of Rs 1 lakh-crore Shriram Group is planning to float a Rs 1,000-crore platform to acquire these in south India.
 
M Murali, managing director, Shriram Properties, said at this point of time many projects have stressed due to various issues, including uncertainties in the industry, financial constrains, regulation issues, among other factors.
 
The PE-backed company is planning to acquire such assets, mainly in south India. The company expects the value of such properties would be around 50 per cent of Shriram’s portfolios in the next three-five years.
 
“We will put Rs 200 crore, while the balance will come from including PEs, pension funds and sovereign funds,” said Murali, who expects to sign term sheet by the end of December.
 
Existing in include Walton, TPG, Starwood, Sun-Apollo, Tata Capital, Ask Property and ICICI Prudential.
 
The company has over 20 million sq ft of built-up space. Along with this, it also has over 12 million sq ft to be delivered in the next two years and 45.85 million sq ft under development.

First Published: Thu, November 30 2017. 01:20 IST