Shriram Properties Limited and an investment arm of Mitsubishi Corporation, Japan recently have inked agreement for partnership in an ongoing large residential development project in Chennai. Under the agreement, Mitsubishi arm is investing approx Rs180 crores towards 70% stake in an ongoing residential project Shriram Park 63.
The project is being developed on a prime land at GST Road in Chennai, with over 1,450 residential units and 2 million square feet of saleable area. Shriram has already pre-sales of over 25% of the project that has revenue potential of over Rs 1,000 crores in the next 3-4 years. “The total investment for this project is over Rs 450 crores and project will be completed in phase wise”, the company confirmed.
This marks Mitsubishi’s entry into the Indian real estate sector.
Kentaro Koga, General Manager, India / Myanmar, Real Estate Business, Mitsubishi and CEO of its investment arm, DRI India Co Ltd, said “We truly feel that Shriram is our best partner for the first project in India. Given its strong brand, execution and delivery track record, and focus on customer value, we believe this partnership will support our growth aspirations. We are looking forward to working with such a credible partner in an important sector in India.
Shriram has active ongoing development at this location, with the Company having already delivered over 2 million square feet of office space to Xander adjacent to Shriram Park 63 and developing an additional 2 million square feet of office space under the development management (DM) model.
M Murali, Managing Director of Shriram Properties said “We are pleased to have a global giant like Mitsubishi as our partner and be part of their maiden investment in the residential sector in India. Mitsubishi is another significant addition to the list of marquee partners of Shriram Properties’ projects. With positively changing industry landscape and improving the market outlook, timing is appropriate for accelerating the development and leveraging best of both companies towards creating sustainable value for stakeholders”.
Shriram has pursued the partnership model for accelerated development in several of its past and current projects. It has a successful project partnership involved several marquee investors including Sun Apollo, Hypobank, Xander, Amplus Reality, ICICI Prudential, Motilal Oswal, and ASK Property Investment.