PE-backed Shriram Properties to acquire stressed residential projects

Shriram Properties is looking to buy stressed residential projects with 50 per cent of its portfolio in the coming years. The real estate arm of Rs 1 lakh-crore Shriram Group is planning to float a Rs 1,000-crore platform to acquire these assets in south India.

 

M Murali, managing director, Shriram Properties, said at this point of time many projects have stressed assets 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 investors including PEs, pension funds and sovereign funds,” said Murali, who expects to sign term sheet by the end of December.

 

Existing investors in Shriram Properties 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.