The two companies have signed definitive agreements for partnership to promote the residential project, which is spread over in 63 acres.
Shriram was, in fact, the chosen partner for the first-ever realty investment respectively by TPG, Tata Capital, Walton Street Capital and Starwood Capital.
Under the terms of the agreement, Mitsubishi would take a 70 per cent stake in an ongoing residential project named “Shriram Park 63”.
The project is being developed on prime land at GST Road, Chennai, with over 1,450 residential units and two million square feet of saleable area. Shriram has already pre-sales of over 25 per cent of the project, which has revenue potential of over Rs 10 billion over the next 3-4 years.
Shriram has active ongoing development at this location, with the Company having already delivered over two million square feet of office space to Xander, adjacent to Shriram Park 63 and is working on an additional 2 million square feet of office space under the development management (DM) model.
Shriram has pursued the partnership model for accelerated development in several of its past and current projects. It has project partnership involved several marquee investors including Sun Apollo, Hypobank, Xander, Amplus Reality, ICICI Prudential, Motilal Oswal, and ASK Property Investment, many of whom had profitable exits as well. The Mitsubishi partnership, an extension of this strategy, is aimed at leveraging strengths of both partners for superior value.
M Murali, Managing Director of Shriram Properties said Mitsubishi is another significant addition to the list of marquee partners of Shriram Properties’ projects. "With the positively changing industry landscape and improving market outlook, timing is appropriate for accelerating the development and leveraging best of both companies towards creating sustainable value for stakeholders.”
Kentaro Koga, General Manager, India/Myanmar, Real Estate Business, Mitsubishi and CEO of its investment arm, DRI India Co Ltd, said, "Given Shriram's strong brand, execution and delivery track record, and focus on customer value, we believe this partnership will support our growth aspirations. We are looking forward to working with such credible partner in an important sector in India."