Hypo Ready for Second Innings in India: Invests Rs 600 cr in Shriram

December 21, 2007	(Be the first to rate this story!)  Loading ...
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Hypo Real Estate Group, the German commercial real estate financing conglomerate is ready for its second innings in India. Hypo Group is planning to invest in Shriram Realty Rs 600 crore. The Bangalore based Shriram Properties will execute the three projects which would be financed by Hypo Group. However management of Sriram Properties has not confirmed the development yet.Shriram Properties is a Rs 450 crore real estate arm of the Rs 25,000 crore diversified Shriram Group which has business interests covering real estate, truck financing, insurance, consumer finance and information technology and employs over 15,000 people in its various verticals.

In the past Hypo had taken over the reins of Rs 380 crore Tanglin Development promoted by VG Siddhartha who runs the Café Coffee Day chain. So this investment in India is the second one for Hypo and Hypo is looking out to consolidate its market hold in South India with the key emphasis on Chennai market for its commercial projects that is expected to spread over 6 million square feet. Though it is not clear whether Hypo had taken an equity exposure or channeled this as debt.

Shriram Properties, in the recent past has been on a fund-raising spree and has raised around Rs 1,000 crore from US-based private equity players Walton Capital and and Starwood Capital Group. In addition to investing substantially in an integrated township project being developed by Shriram in Kolkata, Walton and Starwood recently invested $100 million at the enterprise level in Shriram Properties.

Estimated at around 5,000 crores, The Kolkata project is one of the largest-scale partnering of global real estate private equity firms in India, will be on land previously belonging to the Hindustan Motors plant in Uttarpara, and will comprise approximately 20 million square feet of residential, retail, office and civic infrastructure.

Shriram Properties was founded in 1995, and over the past 12 years has built over 4.5 million square feet of residential and commercial space in Bangalore, Chennai, Coimbatore and Hyderabad. The company has built a team of almost 300 people in five offices throughout India, and is presently developing a portfolio of 70 million square feet of space across India, including residential, office, retail, hotel and civic infrastructure. The company after establishing a decent presence in South India is now looking to branch out to Northern and Western Indian markets.

According to industry sources Shriram Properties is also gearing up for an initial public offer next year through which the company is expected to raise close to Rs 900 crore.

News Published Under:   Real Estate Developers |

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