The Hindu Business Line : Shriram Properties looking for international partners

Bangalore-based Shriram Properties Ltd is scouting for international partners for its proposed hospitality and retail ventures in the IT SEZ in Chennai.

Shriram Properties, which has earmarked Rs 900 crore for the project, plans to develop serviced apartments, hotel and a mall besides residential complexes and IT park, in the defunct factory land of Standard Motor Products of India Ltd in Chennai. The company had acquired about 58 acres of factory land from Standard Motor in a court auction for Rs 154.10 crore in 2005.

According to sources, the company is in talks with “a few hotel chains” for management contract of its upcoming serviced apartments and hotel. “The Chennai SEZ will have serviced apartments. A hotel may also come up there. Talks are on with a few international chains for management contract of these properties. It will take another six months to choose the partner,” a source said.

Diluting stake

He did not name the hotel chains, which may partner with Shriram Properties. Industry sources, however, pointed out that the company was in talks with hospitality players from Hong Kong and the US. Mr M. Murali, Managing Director of Shriram Properties, was not available for comments.

On retail ventures, the source said, the company was also looking forward to dilute a minority stake in its subsidiary — Shriram Mall Infrastructure Private Ltd — to a foreign major. The company is currently in talks with a couple of investment firms from Asia and another from the US for the proposed stake sale.

The company plans nearly Rs 400 crore investment over the next three years to develop malls over 20 lakh square feet across the country. Shriram Mall Infrastructure Private Ltd will execute the retail projects on behalf of Shriram Properties.