Bengaluru: Shriram Properties Ltd has partnered with Kotak India Affordable Housing Fund-I for developing the next phase of Shriram Grand 2 at Uttarpara near Kolkata. The deal, which was closed on Wednesday, will see Kotak India invest up to ₹40 crore of equity capital for 50% economic interest in the proposed project.
Kotak India is an affordable housing fund managed by Kotak Investment Advisors Ltd. CDC Group, a development finance institution owned by the UK government, is an anchor investor in the fund. This is the first investment from the $50 million fund.
Shriram Grand 2 has over 3,000 units across 2.1 million sq.ft of saleable area and will be launched in 2019 as part of Shriram Grand City, an integrated township with over 33 million sq.ft. The first phase has around 2,300 units, of which a substantial part has already been sold.
“This investment is in alignment with our strategy of affordable housing fund with CDC Group, to invest in affordable housing projects with a developer of repute and proven capabilities. Affordable housing is the need of the hour in the country and we are happy to do our bit with our LPs (limited partners)," said S. Sriniwasan, managing director and CEO, Kotak Investment Advisors.
In December, Shriram Properties had filed draft papers with Sebi for an IPO. The Bengaluru-based developer primarily focuses on mid-income and affordable housing projects across cities.
“...Kotak Fund’s investment in Shriram Grand 2 clearly demonstrates the confidence of Kotak and its esteemed investors such as the CDC Group in Shriram and the promising potential in Uttarpara, Kolkata," said M. Murali, chairman and managing director, Shriram Properties.