Shriram Properties Partners With a Kotak Fund for Its Affordable Housing Project In Kolkata
Shriram Properties Limited (“SPL”), one of the leading residential real estate development companies in South India, has entered into partnership with Kotak India Affordable Housing Fund-I (“KIAHF”) for development of its next phase of affordable housing project (named “Shriram Grand 2”), coming up as part of “Shriram Grand City” at Uttarpara in Kolkata.
Under the partnership that was consummated today, KIAHF will invest up to Rs.400 million towards 50% economic interest in the proposed development of Shriram Grand 2.
KIAHF is an affordable housing fund that is managed by Kotak Investment Advisors Limited and has CDC Group, a development finance institution owned by the UK government, as an anchor investor.
“Shriram Grand 2” is an affordable housing project with over 3,000 units and aggregate saleable area of over 2.1 million sq.ft., being developed by SPL through a wholly owned subsidiary. This project is being launched in 2019, as part of “Shriram Grand City”, an integrated township with over 33 million sq.ft., of saleable area under development, in Uttarpara, Kolkata. As part of the integrated township, SPL is already developing “Shriram Grand 1” comprising of approximately 2,300 units with aggregate saleable area of around 2 million sq.ft., substantial part of which is already sold.
Commenting on the transaction, Mr. M. Murali, Chairman and Managing Director of Shriram Properties Limited said, “We are privileged to have Kotak as our partner in this important development initiative. Kotak Fund’s investment in Shriram Grand 2 clearly demonstrates the confidence of Kotak and its esteemed investors such as the CDC Group in Shriram and the promising potential in Uttarpara, Kolkata. We are looking forward to taking this partnership to next level and leverage each other’s strengths in making Shriram Grand 2 a big success, while exploring opportunities for expedited development ofShriram Grand City as a whole”
Commenting on the partnership, Mr.Balasubramaniam, COO – Kolkata Region of Shriram Properties Limited said, “Shriram Grand City is an important development initiative and have been fortunate enough to receive continuing support of the Government of West Bengal at every stage of development. We are glad to receive the Kotak Fund as our strategic partner and are confident that this partnership will go a long way in ensuring accelerated development of Shriram Grand City as a smart neighborhood in Kolkata”
Commenting on the transaction, Mr. S. Sriniwasan, Managing Director & CEO, of Kotak Investment Advisors Limited (KIAL) – the manager to the Kotak Affordable Housing Fund-I said, “This investment is in alignment with our strategy of affordable housing fund with CDC Group, to invest in affordable housing projects with a developer of repute and proven capabilities. Affordable housing is the need of the hour in the country and we are happy to do out bit with our LPs”.
“Shriram Properties has a proven track record and strong execution capabilities, which will help create value to our investors.” said Mr.Chetan Shah, Executive Director – KIAL. “We strongly believe in the investment opportunity offered by the affordable housing segment and are confident that with disciplined and delivery focused execution, coupled with the government incentives for this sector, there are good returns to be made.”