The Hindu Business Line : Shriram Properties floats jt venture

Corporate - Alliances & Joint Ventures
Industry & Economy - Real Estate & Construction
States - Andhra Pradesh
Shriram Properties floats jt venture

Our Bureau

Bangalore , July 19

Shriram Properties today announced the launch of a joint venture with Prudential Investments, a leading Australian property development company, to launch premium `Leisure Lifestyle Township' projects in the country.

Initially, Shriram Prudential, the 50:50 joint venture, would be investing $100 million in the development of the projects.

Sites identified

The company has identified Chennai and Bangalore for the first projects, where it would be acquiring 300-500 acres.

Speaking to newspersons, Mr M. Murali, Managing Director of Shriram Properties, said that the two community centres projects, each estimated to cost Rs 1,200 crore, are expected to come up near the new international airport at Devanahalli in Bangalore while the Chennai project is being planned off East Coast Road.

Shriram Properties, which has projects worth $1.2 billion, is also planning an IPO, said Mr Murali.

The company has already delivered four million sq ft of property so far and is currently implementing 14 million sq ft. It plans to fund the current works from internal accruals and the Group's contributions.

Shriram Properties earned revenues of Rs 120 crore last year and clocked net profit of Rs 23 crore. The company is awaiting final guidelines being worked out by the SEBI for the proposed realty fund to be created by the industry. Until the guidelines are announced, the company would not be able to finalise the corpus or the real size of the fund to be set up by it, Mr Murali said.