Real Estate Pie: Arvind Mills to taste it in partnership with Shriram Properties
Arvind Mills was a known name in the apparel and retail industry and its brands like Flying Machine and Excalibur were well respected in the market. After launching apparel hubs known as ‘’Megamart’’ the group continued doing well. However it seems that Modinomics has created a positive vibe in the market and everyone is expecting the real estate to boom in the next few years. Arvind Mills did not want to miss the bus and hence tied up with Shriram Properties the realty arm of the Chennai-based Rs 60,000-crore Shriram Group.
This partnership will provide Rs 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. The Fund has committed to invest Rs 150 crore for investments in residential projects, mainly in four cities: Bangalore, Chennai, Ahmedabad and Mumbai.
The stake will be 49 % for Arvind Mills and 51 % for Shriram Properties. These will be prime properties with unit prices starting from Rs 90 lakh in Bangalore’s Ennore Road and Whitefield areas. It will take three years for these projects to complete and will provide a potential sales value of Rs 675 crore on the top line for Shriram Properties.
According to Amplus Realty Fund’s Web site, they are all set to invest in the mid-market residential segment in Gujarat, Mumbai, National Capital Region, Pune, Chennai and Bangalore with an investment size of Rs 15-25 crore each.
Source- The Hindu Business Line
60000 crore Shriram Group, Arvind Mills, Megamart, Shriram Properties, Shriram Properties Ltd., Shriram Properties raise 1500 crore
