American real estate firm invests $100 mn in Shriram Properties

American real estate firm invests $100 mn in Shriram Properties

Bangalore: Walton Street Capital, a US real estate private equity fund, has picked up an undisclosed stake in property developer Shriram Properties Ltd for $100 million, or about Rs400 crores.

Shriram Properties, a real estate arm of the Shriram Group, said it plans to utilize the capital for expanding land holdings in north and west India in the next one year. The company however said that it was open to investment by others.

“We are ready to get into partnerships with others on various large projects" said M. Murali, managing director, Shriram Properties.

Backed with $14 billion assets, Walton Street plans to invest in more Indian real estate ventures.

“We are constantly looking for additional partnerships in India, as the consumer base is deepening, economic growth is high, and there is a rising demand for offices, malls and residences. We are here on a long-term basis," said Jeffrey S. Quicksilver, founding partner, Walton Street.

Last month, Shriram properties said that both Starwood Capital Group and Walton Street Capital would partner the company to develop a integrated township in Kolkata.

With Walton Street now picking up a stake , it will have two members on Shriram Properties’ board, which has seven members.

Murali said the company had already succesfully completed five million sq. ft of properties and currently is developing 65 million sq. ft more. It had posted revenues of Rs295 crore last year. The company currently has projects in Kolkata, Chennai and Bangalore.

According to venture capital firm Indiareit Fund Advisors Pvt. Ltd, India may get as much as $10 billion in overseas funds betting on real estate in the next two-and-a-half years. Real estate funds focused on India have attracted about $3 billion so far.

India’s real estate sector will grow to $90 billion by 2015 from $12 billion in 2005, according to a report by Moody’s Investors Service.