Shriram Properties to receive $ 80 million from Tata Capital PE fund
$ 80 million (about Rs 468 crore) was invested by a private equity (PE) fund owned by Tata Capital, in South India-focussed realty firm, Shriram Properties. Tata Opportunities Fund Managing Partner Padmanabh Sinha stated that the company believes that the residential real estate market, particularly mid-market housing, should see high growth. Due to increasing urbanisation, changing demographics and an upturn in the economy, this sector is expected to see a high mobility in the next few years.
The Tata Opportunities Fund (TOF) is a third party private equity fund, which was created with the focus to invest in select Tata group entities as well as other independent Indian businesses. The fund gets a board seat after the investment.
$ 600-million Tata Opportunities Fund was raised last year and this is the second non-Tata Group investment for the fund. Shriram Properties which is a part of the Rs 90,000-crore Shriram Group has wide ranging interests including chit funds and financial services.
The PE fund owned by Tata Capital was attracted by Shriram Properties because of the company’s management team as well as differentiated business model. Shriram Properties has over 50 million square feet under development across Bangalore, Chennai, Coimbatore, Kolkata, Visakhapatnam and Hyderabad.
The Managing Director of Shriram Properties, M Murali stated that the investment would help the company to begin its next phase of growth and they are hoping that they can launch an initial public offering in the near future. This investment has created a backdrop for that and has positioned Shriram Properties in a favourable market position.
Source- Financial Chronicle
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