BANGALORE: Textile major Arvind Ltd CMD Sanjay Lalbhai and a real estate fund of Aditya Birla are buying stakes in separate development projects of Shriram Properties, the unlisted real estate arm of the $10 billion Shriram Group, as marquee India Inc investors are tapping credible corporate names in the property market.
Shriram will raise a cumulative $27 million or Rs 167 crore from Lalbhai co-founded Amplus Realty Fund and Aditya Birla's investment unit, in two residential projects in Bangalore. Shriram will hold 51% stake in the two joint ventures, leaving the rest with Birla and Amplus.
Aditya Birla fund will invest $17 million into a premium residential project, while Amplus will pump in just under $10 million into another smaller project, said sources cited earlier. Shriram Properties MD M Murali was not reachable for a comment.
Anuranjan Mohnot, CEO of Amplus Capital Advisors, declined to comment on the story, but said that Amplus was keen to invest in Bangalore and was looking at multiple deals. An e-mail query sent to Aditya Birla didn't elicit a response.
These deals come at a time when a Tata-sponsored fund is closing a Rs 600-crore deal to buy 18% stake in the parent Shriram Properties, a Bangalore-based company valued at Rs 3,300 crore. TOI first reported on this deal in September last year.
Private equity giant TPG already holds a 17% stake in the company, while Starwood Capital and Walton Street Capital together hold 23% stake. Shriram promoters will hold 42% stake in Shriram Properties post the Tata transaction.