Shriram Properties buys plotted project in South India for Rs 125 cr

Shriram Properties (SPL) announced that it acquired Golden Ira, a plotted development project in North Bengaluru, for Rs 125 crore through its wholly owned subsidiary SPL Housing Projects.

Golden Ira is plotted development project in North Bangalore, with an aggregate saleable area of approx. 10 lakh square feet. The project has necessary approvals in place already and also partially completed infrastructure development. Golden Ira belongs to Golden Gates Group and that was stressed asset with lending entities part of the IIFL Group.

SPL acquired the Project from IIFL Group entities through SPL Housing Projects, a wholly owned subsidiary of the company. SPL saw the opportunity given the location and significant potential to create value for its stakeholders and is planning to launch the Project under the name "Shriram Pristine Estates" shortly.

Shriram Pristine Estates will also be the first investment under the recently concluded co-investment platform setup jointly between SPL and the ASK Property Fund. Under the platform, partners have committed to co investing upto Rs 500 crore, and plan to co-invest in plotted and residential developments projects in Bengaluru, Chennai and Hyderabad.

Murali M, chief managing director, Shriram Properties said, The is yet another successful acquisition of stressed asset by us in recent months. This addition will strengthen our launch pipeline for FY23, and we will focus on unlocking value through accelerated execution and timely delivery. We remain excited by the significant opportunities and are well positioned to benefit from the consolidating industry environment.

Shriram Properties is one of South India's leading residential real estate development companies, primarily focused on the mid-market and affordable housing categories. SPL's key markets include Bangalore, Chennai and Kolkata which together accounts for nearly 85% of its development activities.

On consolidated basis, the company reported net profit of Rs 19.58 crore in Q2 FY23 as compared to net loss of Rs 23.28 crore in Q2 FY22. Net sales surged 240% year on year to Rs 258.55 crore in Q2 FY23.

The scrip rose 0.42% to Rs 82.85 on the BSE.

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