Shriram Properties to acquire ‘stressed assets’, invest Rs 1,600 crore

Source: The Hitavada      Date: 17 Dec 2017 11:56:04


CHENNAI,

Dec 16,

(PTI),

SHRIRAM Properties, part of the diversified conglomerate Shriram Group, would look at acquiring ‘stressed assets’ of other builders, as part of its growth plans, which include lining up of investments of about Rs 1,600 crore, a top official said here on Saturday. The Bengaluru-based company would look at developing residential properties and also setting up commercial establishments particularly in Chennai and Bengaluru, Shriram Properties Managing Director, M Murali said here.

“We will be investing close to Rs 1,000 crore. It will be in the residential segment. Another Rs 500-Rs 600 crore will be made in commercial properties,” Murali told reporters.Stating that there had been a huge gap between the demand and supply in the real estate sector, he said, “land prices are expected not to rise in the next two years”. The industry was also expected to become more brand-conscious over the next two years as several players might exit the business due to lack of funds and branded realty operators would alone exist.

He said that the company would acquire ‘stressed assets’ or take up those ‘projects’ that were left incomplete by realty players and added that currently it was holding active discussion to acquire “stressed assets”.