Indian conglomerate Shriram Group's real estate unit, Shriram Properties, has set aside 10.00 billion Indian rupees to invest in stressed real estate assets mainly in South India, while it also evaluates the IPO route to raise more funds, The Hindu Business Line reported.
The company recently purchased three such properties in Bengaluru, containing 200 to 250 units each, as it looks to expand in the sector with more acquisitions. Shriram Properties holds a commercial and residential portfolio of nearly 50 million square feet with projects in Bengaluru, Chennai, Coimbatore and Vizag, the Feb. 21 report noted.
The Bengaluru-headquartered company previously mapped out an IPO in May 2014, when it was seeking to raise 600 billion rupees the following year. The offering was subject to improved market conditions.
Additionally, the real estate unit is also in the process of undertaking a township project — Shriram Grand City — in Uttarpara, near Kolkata. The township will encompass residential units, commercial space, educational and medical facilities, and IT projects within a 390-acre campus.
The initial phase of the project is expected to cost 6.50 billion rupees and is estimated to be completed in four years, the report added.
As of Feb. 21, US$1 was equivalent to about 64.81 Indian rupees.