Arvind Mills realty PE fund ties up with Shriram Properties

Manisha Jha Mumbai | Updated on July 09, 2014

To invest ₹70 crore in two premium residential projects in Bangalore

After bringing alive apparel brands such as Flying Machine, Excalibur and retail chain Megamart, Arvind Mills is now getting ready to expand its footprint into the real estate business.

The company has tied up with Shriram Properties, realty arm of the Chennai-based ₹60,000-crore Shriram Group, to provide ₹70 crore in funding for two premium residential projects in Bangalore.

The fund will be mobilised from Arvind Mills’ maiden real estate private equity fund, called Amplus Realty Fund. It was set up, among others, by Arvind Ltd’s Chairman and Managing Director Sanjay Lalbhai and CFO Jayesh Shah, in their personal capacities.

The Fund has tied up commitments of ₹150 crore for investments in residential projects, mainly in four cities: Bangalore, Chennai, Ahmedabad and Mumbai.

Deal closed 3 months ago

A person privy to the development said: “The deal was closed three months ago and the documentation process is currently on. The deal will be structured as pure equity … with equity dilution to the tune of 49 per cent for Arvind Mills and 51 per cent for Shriram Properties.”

“The timeline of the projects will be three years and provide a potential sales value of ₹675 crore on the topline for Shriram Properties. For Arvind Mills, it would imply a bigger footprint in realty.

According to sources, the projects, located in Bangalore’s Ennore Road and Whitefield areas, would entail construction of about 800 apartments spread across 1,500-2,000 square feet, with unit prices starting from ₹90 lakh. Construction is slated to begin within three months.

Both Arvind Ltd and Shriram Properties remained unreachable for comments.

This deal marks the Ahmedabad-based fund’s second deployment after it first invested ₹30 crore in Bangalore based Assetz Home in 2012.

According to Amplus Realty Fund’s Web site, the fund is focusing on investments in city-centric prime high-end or mid-market residential or residential-led developments, plotting schemes in Gujarat, Mumbai, National Capital Region, Pune, Chennai and Bangalore with an investment size of ₹15-25 crore.

Published on July 09, 2014

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