Mitsubishi to invest Rs 180 crore in Shriram Properties’ project in Chennai

Mitsubishi invests Rs 180 crore in Shriram Properties’ project in Chennai

Chennai

In the maiden Japanese investment in the Indian real estate, Mitsubishi Corporation, Japan (“Mitsubishi”), has agreed to invest around Rs 180 crore in a large residential property being developed by Shriram Properties in Chennai.

Kentaro Koga, General Manager, India / Myanmar, Real Estate Business, Mitsubishi and CEO of its investment arm, DRI India said “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 credible partner in an important sector in India.

As per the transaction, Mitsubishi will pick up 70% stake in an ongoing residential project named “Shriram Park 63”. The project is being developed at GST Road in Chennai, with over 1,450 residential units and 2 million square feet of saleable area.

M Murali, MD Shriram Properties said “With positively changing industry landscape and improving market outlook, timing is appropriate for accelerating the development and leveraging best of both companies towards creating sustainable value for stakeholders.”

Shriram has pursued the partnership model for accelerated development in several of its past and current projects. The Mitsubishi partnership is an extension of this strategy aimed at leveraging strengths of both partners for superior value.

In the past the builder has partnered with Sun Apollo, Hypobank, Xander, Amplus Reality, ICICI Prudential, Motilal Oswal, and ASK Property Investment, many of whom had profitable exits as well.

The company said that Shriram has already pre-sales of over 25% in the Chennai project that has revenue potential of over Rs.1,000 crores in next 3-4 years.

Foreign investors, including Chinese, Japanese and Korean, have specifically shown a lot of interest industrial development projects in the backdrop of implementation of Goods & Services Tax. However, not much investment has come through so far.

So far investors from Singapore, Canada and United States has made huge investment in the Indian real estate sector.

Recent key announcements regarding Wanda Industrial New City to be developed by Dalian Wanda Group, industrial parks by China Fortune Land Development Company Private (CFLD), Japanese investment zone at Supa and Chinese industrial zone in Vadodara indicate their increasing interest in India.

Source: Economic Times