Shriram Properties' Strategic Partnership with ASK Property Fund Yields Impressive Returns
Shriram Properties Limited (SPL) has made headlines with the early exit of ASK Property Fund from its project, Shriram Pristine Estates, with a 20% IRR and an investment multiple of 1.24x.
Shriram PropertiesAsk Property FundReal EstateInvestmentStrategic PartnershipsReal EstateSep 04, 2024
The project, located in Doddaballapura, Bangalore, was initiated under the SPL-ASK Co-Investment Platform, which was established in December 2022 with an initial investment of INR 85 crore. The platform has a total capital commitment of INR 500 crore from its partners, showcasing substantial investor confidence in SPL's development capabilities.
Launched in January 2023, Shriram Pristine Estates has enjoyed a strong response from buyers, driving swift sales and fast-tracking project completion. This momentum opened up an opportunity for ASK Property Fund to exit the investment earlier than expected.
In less than 18 months, ASK Property Fund reported a return of 20% IRR and an investment multiple of 1.24x, indicating a healthy profit margin. On the other hand, Shriram Properties has benefitted from robust sales and ongoing customer handovers, solidifying their financial standing in the market.
Both SPL and ASK Property Fund have expressed ongoing commitment to further collaborations in the real estate sector. The platform has already allocated over INR 200 crores to another project, Shriram 122West in Chennai, launched in January 2024.
Gopalakrishnan J, Executive Director & Group CEO of SPL, remarked on the successful outcome, highlighting the importance of delivering value to business partners. He emphasized that this exit is not just a win for ASK Property Fund, but also a testament to SPL's strategic planning and execution capabilities.
Lakshmipathi Chockalingam, Managing Partner at ASK Property Fund, noted that this investment is a product of effective collaboration, ensuring mutual benefits. He aims to support SPL's growth as they explore new market opportunities and projects together.
Overall, the early exit from Shriram Pristine Estates marks a notable achievement in the Indian real estate landscape, underscoring the value of strategic partnerships in enhancing profitability and guiding investment decisions.
With both partners focusing on further growth opportunities, it will be interesting to watch how they capitalize on upcoming trends in housing and urban development in the region. Their journey represents not only a case study in successful investment but also a signal of continued investor interest in the buoyant property landscape of India.
About Shriram Properties Limited
Shriram Properties Limited is a well-known real estate developer in South India, with a strong presence in the residential and commercial segments.
About ASK Property Fund
ASK Property Fund is a leading real estate investment fund, focused on investing in high-growth potential projects across India.
Frequently Asked Questions
What is the name of the project from which ASK Property Fund has exited?
Shriram Pristine Estates
What is the return on investment reported by ASK Property Fund?
20% IRR and an investment multiple of 1.24x
What is the name of the co-investment platform established by SPL and ASK Property Fund?
SPL-ASK Co-Investment Platform
What is the total capital commitment of the SPL-ASK Co-Investment Platform?
INR 500 crore
What is the name of the new project launched by SPL and ASK Property Fund in Chennai?
Shriram 122West
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