The Hindu Business Line : Shriram Properties ropes in Starwood, Walton Street

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Shriram Properties ropes in Starwood, Walton Street

For Rs 5,500-cr integrated township project in W. Bengal

Somasroy Chakraborty

Kolkata, Sept. 11 Shriram Properties Ltd, the real estate arm of Rs 25,000-crore Shriram Group, has roped in Starwood Capital Group, LLC and Walton Street Capital, LLC for the proposed Rs 5,500-crore integrated IT township and auto park project at Uttarpara in West Bengal. Hindustan Motors (HM) is a minority partner in the project, which spreads over 314 acres of land.

Starwood Capital Group is a privately held global investment management firm based in Greenwich and specialises in real estate related investments on behalf of select private and institutional investor partners. The company was also the promoter of one of the world’s largest hotel companies, Starwood Hotels and Resorts. Walton Street Capital is a private real estate investment company, which has invested or committed to invest nearly $10 billion of equity in approximately 150 separate transactions in the US and international real estate.

Special purpose vehicle

A special purpose vehicle (SPV), Bengal Shriram Hi-Tech City Private Ltd, has been set up to execute the project, in which Shriram Properties, Starwood Capital and Walton Street Capital will have about 33 per cent stake each. HM will hold a negligible stake in the SPV.

It may be recalled that HM had entered into an arrangement with Shriram Properties earlier this year for the development of the IT township and auto park on 314 acres specifically identified for the purpose at Uttarpara and in accordance with the conditions laid down by the West Bengal Government in its approval order dated September 13, 2006.

To begin with, the three partners will bring in equity of Rs 100 crore each. “We are yet to decide on how and where we will raise the debt. Initially, we will raise about Rs 500-750 crore debt,” a source told Business Line.

The US-based architectural firm HOK has been appointed to prepare a master plan.

According to the source, the built-up area is expected to be nearly 25 million square feet.

Construction work is expected to commence in nine months and will be completed over the next six years.