In order to launch a new residential project, Shriram Properties will raise Rs 1,000 crore through Private Equity funds. One of the company’s top executives told the concerned media party. Shriram Properties is an ancillary unit of Bengaluru based conglomerate, Shriram Group.
Last year Shriram Properties raised Rs 900 crore for numerous projects which includes one of its entity-level investments. This investment amounts upto Rs 468 crore, which is done by Tata Opportunities Fund with 18% stakes. The latter is a subsidiary of Tata Capital Ltd.
Shriram Properties is looking forward to launch 5 residential projects in Bangalore, 3 in Chennai and one residential project each in Coimbatore and Visakhapatnam.
The Managing Director of Shriram Properties, M. Murali said, “We won’t raise capital by diluting stake in the company now, but we will raise at least Rs.1, 000 crore this year for a number of new projects that we will launch. We will also use this money to cash out in existing projects and use that money in other projects.”
Shriram Properties has raised Rs.67 crore from India Realty Excellence Fund II, managed by Motilal Oswal Real Estate Investment Advisors Pvt. Ltd, in what is probably the developer’s first fund-raising activity of 2015.
The capital has been invested for the development of a 19.5-acre, mid-income residential project called Greenfield, located off Old Madras Road in Bengaluru. Launched a month and a half back, the project is a joint venture development with Garden City Reality Pvt. Ltd, the landowner from whom Shriram Properties has bought the land. The transaction was announced on January 20, 2015.