Realty firm Shriram Properties Ltd has acquired a stressed project in Benglauru and will invest up to Rs 125 crore for development.
On Wednesday, the company said it has completed the ''acquisition of 'Golden Ira', a plotted development project of the Golden Gates Group that was a stressed asset with lending entities part of the IIFL Group.'' The transaction involves capital commitment of up to Rs 125 crore towards the acquisition and development of the project.
It is an approved plotted development project located at Doddaballapur in North Bengaluru, with an aggregate saleable area of about 10 lakh square feet. The project has necessary approvals in place already and also partially completed infrastructure development.
Shriram Properties said it has acquired the project from IIFL Group entities through SPL Housing Projects Pvt Ltd, a wholly-owned subsidiary of the company.
The company said it has acquired the project because of the location and significant potential to create value for its stakeholders.
It plans to launch the project under the name 'Shriram Pristine Estates' shortly. This will be the first investment under the recently concluded co-investment platform with the ASK Property Fund.
Under the platform, Shriram Properties have committed to co-invest up to Rs 500 crore, and plans to co-invest in plotted and residential development projects in Bengaluru, Chennai, and Hyderabad.
''This is yet another successful acquisition of stressed asset by us in recent months. This addition will strengthen our launch pipeline for FY23, and we will focus on unlocking value through accelerated execution and timely delivery,'' Murali M, CMD of Shriram Properties, said.
Shriram Properties Ltd is one of South India's leading residential real estate development companies, primarily focused on the mid-market and affordable housing categories. Its key markets include Bengaluru, Chennai and Kolkata. The company has delivered 33 projects with a saleable area of 19.5 million square feet.
It has a strong development pipeline comprising of 53 projects with an aggregate development potential of 53 million square feet as of September 30, 2022.
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