Shriram Properties, ASK Property unveil investment in Chennai’s real estate
In a landmark development for Chennai’s bustling real estate market, Shriram Properties Limited and ASK Property Fund have announced a massive joint investment of Rs. 206 crores. The investment is targeted towards acquiring 100% of the development rights in an ongoing Chennai project via Shrivision Elevations Private Limited, a wholly-owned subsidiary of Shriram Properties. The highly-anticipated project is set to be launched as “Shriram 122 West” in the near future.
Strategic Location and High Revenue Potential: The Lowdown on “Shriram 122 West”
The much-talked-about “Shriram 122 West” project is strategically located in Mangadu, a prime locale in proximity to the Porur-Manapakkam IT cluster and the upcoming metro corridor. The project boasts an enviable total saleable area of 1.9 million square feet across two phases, with an aggregate revenue potential of a staggering Rs. 1,200 crores over the next five years. Targeting the lucrative mid-income group, the project plans to offer approximately 1,900 residential units.
Investment Specifics: ASK Real Estate Special Opportunities Fund IV Fuels the Project
The joint investment of Rs. 206 crores by Shriram Properties and ASK is specifically earmarked for acquisition purposes. For operational liquidity, the project’s working capital needs will be separately met. This colossal investment is being funneled from the ASK Real Estate Special Opportunities Fund IV.
Co-Investment Platform Thrives: Partners Evaluate Further Opportunities
This announcement marks the second joint investment through the co-investment platform established by ASK Property Fund and Shriram Properties in November 2022. With an aggregate capital commitment of Rs. 500 crores, the platform’s first investment in “Shriram Pristine Estates” has already exceeded expectations in both volume and pricing since its launch in February 2023. In total, 60% of the committed capital from the platform has already been utilized, and both partners are actively exploring more investment opportunities in Bengaluru, Chennai, and Hyderabad.
Leadership Comments: Optimism Abounds for Future Prospects
Commenting on this significant milestone, M Murali, Chairman & Managing Director of Shriram Properties, noted that the acquisition would strengthen the company’s position in the micro-market. On the other hand, Lakshmipathi Chockalingam, Managing Partner – South at ASK Property Fund, highlighted Shriram’s strong reputation in the mid-segment market and indicated that the current market conditions in Chennai are incredibly favorable for investment.
Stay tuned for more updates on this groundbreaking joint investment in Chennai’s booming real estate market.