Shriram Properties, ASK Property Fund Sign Pact To Set Up Rs 500-Crore Housing Platform
Shriram and ASK will co-invest in plotted and residential developments projects in Bengaluru, Chennai, and Hyderabad.
Realty firm Shriram Properties Ltd and ASK Property Fund have agreed to set up a Rs 500-crore investment platform to acquire housing projects.
Both companies have signed an MoU for setting up the investment platform for acquisition of residential real estate projects.
Under the platform arrangement, Shriram and ASK will co-invest in plotted and residential developments projects in Bengaluru, Chennai, and Hyderabad.
"Aggregate commitments towards the platform will be up to Rs 500 crore and the committed capital is expected to be deployed over the next 12 months," Shriram Properties said in a statement.
ASK will invest through its managed Category II Alternative Investment Fund.
Shriram and ASK have already committed their first investment under the new platform for a plotted development project in North Bangalore.
"The platform will invest up to Rs 125 crore towards acquisition and development of this project that already has necessary approvals and also partially completed infrastructure development," the statement said.
The proposed project is to be launched during the third quarter of this fiscal year, with saleable area of about 8 lakh square feet.
Shriram and ASK have a successful track record as partners, previously having worked on the development of a residential apartment project called 'Shriram Chirping Woods' at Sarjapur Road, Bengaluru. ASK successfully exited from the investment in 2020.
Murali M, CMD of Shriram Properties, said: "The partnership platform will provide committed capital availability and allow us to seize new opportunities for further growth and value creation efficiently."
Amit Bhagat, CEO and MD, ASK Property Fund said, "Investors continue to remain committed to real estate and investments are getting more broad-based with active participation across asset acquisitions."
Shriram Properties is one of the leading real estate developers in the country. It has a major presence in South India.
ASK Property Fund (ASK Property Investment Advisors) is the alternate asset investment arm of the ASK Group set up to manage and advise real estate dedicated funds. It has raised around Rs 5,000 crore ($800 million) since 2009 and investors include family offices, ultra high net worth individuals, high net worth individuals and institutions.