Strategic Investment in Shriram Properties
Texas Pacific Group (TPG) Capital, a renowned US-based private equity firm, has acquired a significant 15% stake in Shriram Properties, the flagship real estate arm of the diversified Shriram Group. This substantial investment of INR 450 crore has resulted in a valuation of over INR 2,700 crore for the Bangalore-based developer.
Existing Ties with the Shriram Group
Notably, TPG currently holds a substantial 49% shareholding in Shriram Retail Private Holdings and another 28% in Shriram Citi Union Finance. Earlier in March, TPG had successfully acquired the assets of Vishal Retail for INR 70 crore through its arm, Shriram Retail.
Growth Plans for Shriram Properties
According to M Murali, Managing Director of Shriram Properties, the proceeds from this private equity investment will be utilized to:
- Diversify Portfolio: Venture into the lucrative retail, hospitality, and information technology (IT) parks sectors.
- Expand Residential Base: Strengthen their foothold in residential projects.
- Distressed Asset Acquisition: Strategically purchase distressed assets in the market to capitalize on emerging opportunities.
Revised Fundraising Plans
Initially, Shriram Properties had proposed to raise funds through the stock market this year. However, with this private equity investment, those plans have been postponed.
Aggressive Expansion in Commercial Segment
Murali revealed that the company is currently in talks with several builders to acquire five projects spanning both commercial and residential spaces. This move to diversify and expand aligns with the industry's growing trend of developing commercial assets like retail, hotels, and IT parks, which promise steady returns amidst the economic recovery.