Shriram Properties AIF Platform to Close Rs 500 Crore Fund by FY25
Bengaluru-based listed real estate developer Shriram Properties Limited plans to close its alternative investment fund (AIF) fund with Blackstone-backed ASK Property Fund within FY25.
Shriram Properties LimitedAsk Property FundBlackstoneReal EstateInvestmentReal Estate PuneSep 24, 2024
The company has already invested close to Rs 300 crore in the fund and is hoping to commit the rest to close the fund within the next financial year. The company is in the process of identifying its third project for the rest of the commitment, preferably in Bengaluru.
Last month, the company announced an 'early exit' of ASK Property Fund from one of its projects in Bengaluru that delivered a 'significant return', more than doubling the investment in 18 months. The project - Shriram Pristine Estate - was the first under a co-investment scheme involving partners’ investment of Rs 85 crore.
In October 2023, ASK Property Fund reached an agreement with SPL to establish a Rs 500-crore investment platform dedicated to acquiring residential real estate projects. Following the closure of this fund, the company plans to raise another Rs 500 crore for investment in residential projects in the next financial year.
The company is also set to develop its first project in Pune, which has been delayed due to approval-related issues. The project, located in Undri in the southern part of Pune, will sprawl 1.6 million sq ft and will have a combination of residential and commercial spaces. The residential apartments will fall into the mid-segment category with about Rs 5,000-6,000 per sq ft. The project will have about Rs 1,000-1,200 crore of sale value.
Pune is one of the fastest-growing residential markets across the top cities, and the company plans to contribute about 2-3 million sq ft of residential sales for the group by FY27. The company is evaluating projects equivalent to 4-5 million sq ft in Pune and will have a land value of Rs 400-500 crore - which can be through joint development or other forms of acquisition.
In FY24, the group planned to deliver 2.5 million sq ft (msf) of residential units with a sales value of Rs 1,500 crore. Currently, the company plans to develop over five million sq ft within the end of FY25. In the upcoming years, the Group's residential portfolio will comprise Bengaluru, Chennai, Kolkata, and Pune.
About Shriram Properties Limited (SPL)
Shriram Properties Limited (SPL) is a Bengaluru-based listed real estate developer. The company has a strong presence in Bengaluru, Chennai, Kolkata, and Pune, and is known for its residential projects.
About ASK Property Fund
ASK Property Fund is a Blackstone-backed investment fund that focuses on investing in residential real estate projects. The fund has partnered with Shriram Properties Limited to establish a Rs 500-crore investment platform dedicated to acquiring residential real estate projects.
Frequently Asked Questions
What is the target investment for the AIF fund?
The target investment for the AIF fund is Rs 500 crore.
When is the company planning to close the AIF fund?
The company is planning to close the AIF fund within FY25.
What is the status of the company's first project in Pune?
The company's first project in Pune has been delayed due to approval-related issues.
What is the expected sale value of the Pune project?
The expected sale value of the Pune project is about Rs 1,000-1,200 crore.
What is the company's plan for its residential portfolio in the upcoming years?
The company's residential portfolio will comprise Bengaluru, Chennai, Kolkata, and Pune in the upcoming years.
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