NEW DELHI: Japan’s Mitsubishi Corporation will invest Rs 180 crore to acquire 70 percent stake in Shriram Properties’ residential project at Chennai, marking its maiden investment in the Indian real estate sector.
Shriram Properties and an investment arm of Mitsubishi Corporation have signed definitive agreements for partnership in an ongoing large residential development project in Chennai, the realty firm said in a statement.
As per the agreement, Mitsubishi arm is investing about Rs 180 crore towards 70 percent stake in an ongoing residential project named ‘Shriram Park 63′.
The project has over 1,450 residential units and 2 million square feet of saleable area. Shriram has already pre-sales of over 25 percent of the project that has revenue potential of over Rs 1,000 crore in next 3-4 years.
Commenting on the transaction, Shriram Properties MD M Murali said: “Mitsubishi is another significant addition to the list of marquee partners of Shriram Properties’ projects. With positively changing industry landscape and improving market outlook, timing is appropriate for accelerating the development and leveraging best of both companies towards creating sustainable value for stakeholders.”
Earlier, Shriram Properties said it was the chosen partner for first-ever realty investment respectively by TPG, Tata Capital, Walton Street Capital and Starwood Capital.
“We truly feel that Shriram is our best partner for 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. We are looking forward to working with such credible partner in an important sector in India,” said Kentaro Koga, General Manager, India/Myanmar, Real Estate Business, Mitsubishi and CEO of its investment arm, DRI India Co Ltd.
Shriram Properties said the company has pursued the partnership model for accelerated development in several of its past and current projects.
Source: Press Trust of India