Shriram raises $100

Shriram Properties Ltd, a Bangalore-based property developer, has raised $100 million by selling a minority stake to Walton Street Capital, a US-based real estate private equity fund having asset worth $14 billion, to develop real estate projects in India.

Shriram Properties is part of the diversified Rs 25,000 crore Shriram Group, and plans to utilise this investment to build land bank in north and west part of the country.

The company, which began its operations in 1995, has so far completed five million square feet of properties in Bangalore, Chennai, Hyderabad and Coimbatore.

Walton Street Capital founded in 1995 is investing through the $3.5 billion it raised via equity commitments and has also invested in 162 transactions in the US and in global international real estate.

According to M Murali, managing director, Shriram Properties, "The money raised will be utilised to buy land in Gurgaon in north and Pune in the west. The funds are to be invested in less than one year."

"The investment of Walton Street Capital is an extension of our relationship we had in taking up development of the Hindustan Motors factory land in Kolkata through a special purpose vehicle," he added.

Commenting on the investment, Jeffrey Quicksilver, founding partner of Walton Street Capital, said, "The company believes in partnering with strong local companies in each market we enter and believe that Shriram Properties has built a team and portfolio of projects with potential. We look forward to working with Shriram Properties to develop the present projects and also to execute on an expansion plan to increase its footprint across India."

"Investment in Shriram Properties represents an important and critical element of our company's strategy for India, and the fund's long-term commitment to participate in the Indian growth story," said Sourav Goswami, managing director of Walton Street Capital India.