Shriram Properties Facilitates ASK Fund’s Early Exit in Shriram Pristine Estates

Shriram Properties Limited has announced the successful early exit of ASK Property Fund from the “Shriram Pristine Estates” project, a plotted development in Doddaballapura, Bangalore, under the SPL-ASK Co-Investment Platform.

Shriram Pristine Estates was the inaugural project under this co-investment platform, with partners investing ₹85 crore in December 2022. The platform has a total committed capital of ₹500 crore from both partners. Launched in January 2023, the project received a strong market response, leading to accelerated sales and expedited completion. This created an opportunity for an early exit, yielding substantial value for both partners and enhancing the profitability of Shriram Properties.

ASK Property Fund realised a 20% IRR and an investment multiple of 1.24x in under 18 months. Shriram Properties also achieved even greater returns in terms of sales and customer handovers, with the project nearing completion.

Both partners remain committed to investing in new projects, planning to utilise the remaining capital under the co-investment platform this year. In addition to Shriram Pristine Estates, the SPL-ASK platform has already invested over ₹200 crore in Shriram 122West in Chennai, which was launched in January 2024.

Speaking of the development, the ED and Group CEO of SPL, Mr Gopalakrishnan J, said, “We are excited with the successful early exit of ASK Property Fund with a significant return on investments. This underscores our commitment to delivering superior value to our strategic partners. We are grateful for ASK’s trust and support and remain focused on pursuing growth and value creation through further investments under the Co-Investment Platform.”

Mr Lakshmipathi Chockalingam, Managing Partner – South, ASK Property Fund, said, “This investment is a classic example of an opportunity arising from industry consolidation, as robust sales ensured a successful exit for us. This is part of our platform agreement with Shriram Properties, and we intend to actively participate in their expansion and growth in the near future.”

About Shriram Properties Limited

Shriram Properties is one of South India’s leading residential real estate developers. The company mainly focuses on the mid-market and mid-premium segments. SPL’s key markets include Chennai, Kolkata and Bangalore, which combinedly account for about 85% of its development activities.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.