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Piramal Group invested Rs 75 crore in Shriram Properties

If sources are to be believed, Piramal Group invested Rs 75 crore in Shriram Properties’ residential project, Shriram Summit, which will grace the IT hub of the Nation, Bengaluru. Piramal Group has also invested in financial service business of Shriram Group. The success art of Shriram Properties can also be estimated by looking at the Shriram Properties Feedback on its web portal.

Shriram Group is considering Ask Properties, ICIC Pru, Piramal Enterprise and few more entities to raise Rs 300 crore in order to acquire plots for an investment plan worth for Rs 700 crore.

Shriram Properties

The Managing Director of Shriram Properties, M Murali did not comment on this whole scenario. On the other hand an official of Piramal Group said, “We do not comment on market speculation.” Piramal Group may also invest in a few more projects of Shriram Properties, sources said.

Last year, Piramal picked stake in Shriram Group and in Shriram Capital. Starting May 2013, it invested Rs 4,556 crore. Ajay Piramal was also named as chairman of Shriram Capital.

Besides Piramal, funds such as Ask Property Investment Advisors, Motilal, ICICI Prudential and others, too, have shown interest to invest in Shriram Properties. It may be noted that the company has already attracted investors such as Walton Street, TPG Capital, Star Wood Capital, Sun Apollo, ICICI Prudential, Ask Property Investment Advisors, and Tata Capital.

While declining to confirm the names (which are in talks with Shriram Properties), Murali said: “Many investors have been showing interest in investing in the company,” adding the company would look at raising around Rs 300 crore in the current financial year to support its plan to acquire lands worth Rs 500-700 crore.

Besides investing in land bank, Shriram Properties is also planning to invest around Rs 1,000 crore to develop 3.5 million sq ft of residential space and 370,000 sq ft of commercial space in 2015-16.

This investment will be funded through debt and internal accruals, said Murali, adding that all the projects will be developed by the company on its own and a major chunk of it would be for the mid-market segment, which is priced at Rs 40-70 lakh.

The real estate firm is planning to develop projects across Bangalore, Coimbatore, Chennai, Vishakapatnam and Kolkata. “We are also foraying into Hyderabad market this year with the launch of a residential project,” said Murali.