New Delhi: Tata Opportunities Fund, the flagship private equity fund of Tata Capital Ltd, has picked up Shriram Group's stake in Shriram Properties for Rs 468 crore. Shriram Properties is a Bangalore-based realtor and is part of the Rs 90,000 crore Shriram Group. It is still not clear the exact amount of stake picked up by Tata Opportunities Fund.
Post the Tata investment, the promoter stake in the privately-held Shriram Properties stands at 42 per cent. Other investors include TPG, Walton Street Capital, Starwood Capital, ASK Real Estate, Prudential ICICI, Sun Apollo and Amplus.
With this transaction, Tata Opportunities Fund has completed its second investment outside the Tata Group, taking its total commitments to almost 50 per cent of the $600 million corpus. Its earlier investments were in Ginger Hotels, Tata Sky and auto parts firm Varroc Engineering.
TOF will nominate a director on the board of Shriram Properties as it sees high growth in the residential real estate market, particularly mid-market housing.
Shriram Properties is also considering an initial public offering at a later stage. “We'll come up with an offering but till the time we don't foresee consistent growth for the next three-four years, we won't be coming up with our listing plans,” said Murali of Shriram Properties.
The developer currently has 50 million sq. ft under development across Bangalore, Chennai, Coimbatore, Kolkata, Vishakhapatnam and Hyderabad. It has raised capital for individual projects from private equity funds including ASK Real Estate, ICICI Prudential PMS Real Estate, Sun-AREA Real Estate Pvt. Ltd and Amplus Capital Advisors Pvt. Ltd.