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Shriram Properties to build malls, budget hotels

Shriram Properties to build malls, budget hotels
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First Published: Thu, Aug 28 2008. 11 09 PM IST
Updated: Fri, Aug 29 2008. 10 22 AM IST
Bangalore: Bangalore-based Shriram Properties Ltd, the real estate arm of the Shriram Group, plans to enter the retail and hospitality businesses and build some 15 shopping malls and 70 budget hotels across smaller cities in the next three-four years.
“We will float a subsidiary for our retail business and will kickstart with three malls in Chennai, Kolkata and Visakhapatnam. We are now scouting for a mall operator,” said M. Murali, managing director, Shriram Properties. Each mall will be built at a cost of Rs250 crore.
The company is also floating a unit to enter the hospitality sector in smaller cities. “We are targeting to build around 70 such hotels, costing Rs45 crore each, over the next four years,” Murali said. Shriram Properties, after raising Rs891 crore through strategic partnerships at project and company levels with private equity funds, is now looking for strategic partners for another round of fund-raising.
Walton Street Capital, a US-based real estate private equity fund, has already picked up a 20% stake in the company. “We are currently building our portfolio in India and we are exploring more opportunities with Shriram Properties,” said Amber Malhotra, executive director of Walton Street Capital India Pvt Ltd.
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First Published: Thu, Aug 28 2008. 11 09 PM IST