Construction Industry News
Shriram Properties has announced the successful early exit of ASK Property Fund from Shriram Pristine Estates, a plotted development project in Doddaballapura, Bangalore, launched under the SPL-ASK Co-Investment Platform. Shriram Pristine Estate was the first initiative under this platform, with partners investing Rs 85 crore in December 2022. The SPL-ASK Co-Investment Platform has a committed capital of Rs 500 crore from the partners. Launched in January 2023, the project received a positive market response. Its swift sales and rapid completion generated strong cash flows, enabling an early exit that added value for both partners and increased the company’s profitability.
Shriram Pristine Estates marks an exceptional value creation for both stakeholders, as ASK Property Fund has realised a return of 20% IRR and an investment multiple of 1.24x on their investment in less than 18 months. SPL has realised even greater returns in the project, which is nearing completion, in terms of sales and customer handovers. Both partners are committed to investing in new projects and utilising the remaining commitments under the co-investment platform during this year. In addition to Shriram Pristine Estates, the SPL-ASK platform has invested over Rs. 200 crores in Shriram 122West in Chennai, launched in Jan’24.
Commenting on the development, Gopalakrishnan J, ED & group CEO of SPL said, “We are excited with the successful early exit of ASK Property Fund with 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”
Commenting on the strategic development, 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”.
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