TPG purchases 15% in Shriram Properties

Texas Pacific Group Capital, a US-based private equity firm has taken up a 15% shareholding in Shriram Properties, the realty arm of diversified financial services group, forINR 450 crore. The transaction values the Bangalore-based developer at more than INR2,700 crore. TPG currently holds 49 percent shareholding in Shriram Retail Private Holdings and another 28 percent in Shriram Citi Union Finance. In March, the private equity firm had possessed the assets of Vishal Retail for INR 70 crore through Shriram Retail.

Shriram Properties said it would use the proceeds of the shares sale to venture into retail, hospitality and information technology parks, besides growing its base in the residential projects. “The money raised from private equity fund will also be used to purchase distraught assets in the market,” said M Murali. The company has postponed its proposed plans to increase money from the stock market this year. “We are in talks with builders for buying five projects in commercial and residential space,” Murali managing director of Shriram Properties said. Shriram’s move to diversify its asset portfolio comes at a time when developers are starting to push commercial assets such as retail, hotels and IT parks, riding on the back of economic recovery, to generate steady returns in the next couple of years.

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