Making an ingress into the Indian real estate sector, global giant Mitsubishi has signed definitive agreements for partnership with Shriram Properties. The company’s investment arm is investing Rs 180 crores towards a 70% stake in an ongoing large residential project in Chennai named “Shriram Park 63.”
The investment marks the Mitsubishi’s entry into the Indian real estate sector. The said project is under development on GST Road in Chennai.
The project will have 1,450 residential units and 2 million square feet of saleable area. Shriram has reportedly declared that the project has a pre-sales of over 25% and the project’s revenue potential is pegged at over Rs.1,000 crore over the next 3-4 years.
“We truly feel that Shriram is our best partner for the first project in India,” ET quoted Kentaro Koga, General Manager, India / Myanmar, Real Estate Business, Mitsubishi and CEO of its investment arm, as saying. “Given its strong brand, execution, and delivery track record, and focus on customer value, we believe this partnership will support our growth aspirations.”
Shriram has been active in the ongoing development at this location. The company has delivered over 2 million square feet of office space to Xander, adjacent to Shriram Park 63, and is developing an additional 2 million square feet of office space under the development management (DM) model.
While this is a first real estate JV for Mitsubishi, Shriram has been pursuing the partnership model for accelerated development in several of its past and current projects. It has successful project partnerships with several marquee investors, including Sun Apollo, Hypobank, Xander, Amplus Reality, ICICI Prudential, Motilal Oswal, and ASK Property Investment, many of whom reportedly have had profitable exits as well.
Commenting on the partnership with Mitsubishi, M Murali, Managing Director, Shriram Properties, has declared that they are pleased to have a global giant like Mitsubishi as its partner and that Mitsubishi is another significant addition to the list of its marquee partners.
