Mitsubishi Corporation and Shriram Properties have signed definitive agreements for partnership in the Chennai project named “Shriram Park 63”.
Marking entry into the Indian real estate sector, Japan’s Mitsubishi Corporation has made an investment of about Rs 1.8 billion in an ongoing residential project of Shriram Properties in Chennai.
Mitsubishi Corporation and Shriram Properties have signed definitive agreements for partnership in the Chennai project named “Shriram Park 63”. The residential project is spread over in 63 acres of land.
According to the agreement, Mitsubishi will pick up 70% stake in the housing project.
The project is under development at GST Road in Chennai. It comprises over 1,450 residential units and two million square feet of saleable area. Shriram has already sold over 25% of the project, which has revenue potential of more than Rs 10 billion in the next 3-4 years.
Shriram is also building an additional 2 million square feet of office space under a development model adjacent to Shriram Park 63.
Shriram Properties said that the company has pursued the partnership model for accelerated development in several of its past and current projects. Some of its investors include Sun Apollo, Hypobank, Xander, Amplus Reality, ICICI Prudential, Motilal Oswal, and ASK Property Investment.
M Murali, Managing Director of Shriram Properties, said, "Mitsubishi is another significant addition to the list of marquee partners of Shriram Properties’ projects."
Kentaro Koga, General Manager, India/Myanmar, Real Estate Business, Mitsubishi and CEO of its investment arm, DRI India Co Ltd, said, "Given Shriram's strong brand, execution and delivery track record, and focus on customer value, we believe this partnership will support our growth aspirations. We are looking forward to working with such credible partner in an important sector in India."