TPG pays $100m for 15% stake in Shriram Properties

In August of last year, the US private equity firm was reportedly discussing a $100 million investment for a 25% stake, which would have valued Shriram Properties at over $400 million. The purchase of a 15% stake for the same price means the Bangalore-based developer is now worth more than $600 million.

Shriram Properties plans to use the proceeds to add retail, hospitality and information technology parks to its current residential real estate focus. M. Murali, managing director of ShriramProperties, said the company would target distressed assets, adding that talks were already underway concerning the purchase of five commercial and residential projects.

Shriram Properties has in the past raised funding at project level from Walton Street Capital, Starwood Capital and Sun Apollo. It has projects underway in Bangalore, Chennai, Vishakhapatnam and Kolkata, and plans to develop 50 million sqare feet of residential space in the next seven years. The company's portfolio is currently 75% residential and 24% commercial, and its land bank stands at 1,300 acres.

TPG has invested heavily in Shriram Group assets. It owns 49% of Shirarm Retail Private Holdings and holds 28% of Shriram Credit Union Finance.

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• Topics
• South Asia
• TPG Capital