Mitsubishi to invest Rs 180 crore in Shriram housing project
Shriram Properties and Mitsubishi have signed definitive agreements for partnership in the Chennai project titled Shriram Park 63
Mumbai: In its first real estate investment in India, Japanese conglomerate Mitsubishi Corp is investing around Rs 180 crore in Bengaluru-based Shriram Properties Ltd’s ongoing residential project in Chennai.
In a statement issued by both firms, Shriram Properties and an investment arm of Mitsubishi Corp have signed definitive agreements for partnership in the Chennai project titled Shriram Park 63.
According to the agreement, the Mitsubishi arm will pick up 70% stake in the housing project by investing around Rs 180 crore. The project comprises 1,450 apartments and is being developed on a prime land at GST Road in Chennai. It has 2 million square feet of saleable area.
“Shriram already has pre-sales of over 25% of the project that has a revenue potential of over Rs1,000 crore in the next three to four years,” according to the release.
The investment will mark Mitsubishi’s entry in the Indian real estate sector. In the past, Shriram had partnered with several global private equity investment firms, including TPG, Tata Capital, Walton Street Capital and Starwood Capital.
“We are pleased to have a global giant like Mitsubishi as our partner and be a part of their maiden investment in the residential sector in India,” said M Murali, managing director of Shriram Properties.
Shriram Properties is also building an additional 2 million square feet of office space under a development model adjacent to the ongoing residential project. It had built a 2 million square feet of office building, which was bought out by private equity firm Xander group. .
The company said it had pursued the partnership model for accelerated development in several of its past and current projects. Some of its investors include Sun Apollo, Hypobank, Xander, Amplus Reality, ICICI Prudential, Motilal Oswal, and ASK Property Investment.
“We truly feel that Shriram is the best partner for our first project in India. Given its strong brand, execution and delivery track record, and focus on customer value, we believe this partnership will support our growth aspirations,” according to Kentaro Koga, general manager, India and Myanmar, real estate business, Mitsubishi, and chief executive officer of its investment arm, DRI India Co Ltd.