Tata fund invests $80m in Shriram Properties

Shriram Properties, a unit of the financial services player Shriram Group, has so far developed about 10 million square feet of residential space across 24 projects and currently has over 50 million sq ft under development across Bengaluru, Chennai, Coimbatore, Kolkata, Vishakhapatnam and Hyderabad.

The company is active across real estate development, including residential, commercial, school and hospitality.

Shriram Properties' previous backers include TPG, Walton Street Capital, Starwood Capital, ASK Real Estate, Prudential ICICI, Sun Apollo and Amplus. AVCJ Research data show that Walton Street acquired an undisclosed minority stake in the company for $100 million in 2007. TPG, meanwhile, took a 15% stake for $100 million in mid-2011.

This is the second investment the fund has made outside the Tata Group. Its prior investments include economy hotel chain Ginger Hotels, pay TV unit Tata Sky, and auto part maker Varroc Engineering.

"The Fund believes that the residential real estate market, particularly mid market housing, should see high growth on the back of increasing urbanization, changing demographics and an up-turn in the economy," said Padmanabh Sinha, managing partner with TOF. "Companies like Shriram Properties with its professional management team and differentiated business model are well placed to benefit."

Sprout Capital Advisors advised Shriram Group on the transaction.

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• Topics
• South Asia
• Real estate
• Expansion
• India
• Tata Capital
• Real estate
• Growth capital