Shriram Properties, ASK Property Fund invest Rs 206 cr in a Chennai project

The project, Shriram 122 West is the second joint investment by the co-investment platform set up by ASK & Shriram in November 2022

Realty firm Shriram Properties Ltd (SPL) and ASK Property Fund on Friday announced a joint investment of Rs 206 crores towards 100 per cent of development rights in an ongoing project in Chennai through SPL's wholly owned subsidiary, Shrivision Elevations Private Limited.

The project acquisition formalities were completed and it is being launched as "Shriram 122 West" shortly, said the company.

Located in Mangadu, the project is near the Porur- Manapakkam IT cluster and the upcoming metro corridor, providing a competitive advantage.

With a total saleable area of 1.9 million square feet spread across two phases, the project has an aggregate revenue potential of Rs1,200 crore in the next five years. The project comprises 1,900 residential units, predominantly targeting the mid-income group, it added.

Shriram 122 West is the second joint investment by the co-investment platform set up by ASK & Shriram in November 2022, with an aggregate capital commitment of Rs 500 crore.

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According to the company, the co-investment platform's maiden investment in Shriram Pristine Estates, a plotted development opportunity, is performing well, exceeding expectations on volume and pricing since its launch in February 2023. Collectively between both projects, the platform has utilised 60 per cent of its committed capital already.

Partners are evaluating further opportunities to co-invest in plotted and residential development projects in Bengaluru, Chennai, and Hyderabad, it added.

Commenting on the development, M Murali, Chairman & Managing Director, Shriram Properties said, "The is yet another successful stressed asset acquisition in recent months. The acquisition is value accretive and will help us leverage the strong position in the micro market."

"We are happy to join hands with ASK on yet another promising project and remain confident of unlocking value as we have done with our maiden investment from the recently set co-investment platform," Murali added.

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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. Shriram has a strong name in the mid-segment market of South India and has a proven track record. 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" he added.