Shriram Properties, Mitsubishi Corp arm ink agreements for partnership in Chennai residential project

Shriram Properties Ltd and an investment arm of Mitsubishi Corporation, Japan, have signed definitive agreements for partnership in an ongoing large residential development project in Chennai. This marks Mitsubishi’s entry in the Indian real estate sector.

In the past as well, Shriram has partnered with TPG, Tata Capital, Walton Street Capital and Starwood Capital for realty investment.

Under the terms of the agreement, Mitsubishi’s arm will invest about Rs 180 crore towards 70 per cent stake in an ongoing residential project named ‘Shriram Park 63’. The project is being developed on a prime piece of land on GST Road in Chennai, with over 1,450 residential units and 2 million square feet of saleable area. Shriram has conducted pre-sales of over 25 per cent of the project that has revenue potential of over Rs 1,000 crore in the next three-four years.

Shriram has been active in the ongoing development at this location, with the company having delivered over 2 million square feet of office space to Xander, adjacent to Shriram Park 63, and is developing an additional 2 million square feet of office space under the development management (DM) model.

Shriram has pursued the partnership model for accelerated development in several of its past and current projects. It has successful project partnerships with several marquee investors, including Sun Apollo, Hypobank, Xander, Amplus Reality, ICICI Prudential, Motilal Oswal, and ASK Property Investment, many of whom have had profitable exits as well. The Mitsubishi partnership is an extension of this strategy, aimed at leveraging the strengths of both partners for superior value.

Commenting on the transaction, M Murali, Managing Director, Shriram Properties said: “We are pleased to have a global giant like Mitsubishi as our partner and be part of their maiden investment in the residential sector in India. Mitsubishi is another significant addition to the list of marquee partners of Shriram Properties’ projects. In the positively changing industry landscape and improving market outlook, timing is appropriate for accelerating development and leveraging the best of both companies towards creating sustainable value for stakeholders”.

Commenting on the transaction, Kentaro Koga, General Manager, India / Myanmar, Real Estate Business, Mitsubishi, and CEO of its investment arm, DRI India Co Ltd, said: “We truly feel that Shriram is the best partner for our first project in India. Given its strong brand, execution and delivery track record, and focus on customer value, we believe this partnership will support our growth aspirations. We are looking forward to working with such a credible partner in an important sector in India.”

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