Tata Opportunities Fund invests Rs468 crore in Shriram Properties

Tata Opportunities Fund (TOF), Tata Capital's private equity fund, has invested Rs468 crore in Shriram Properties Pvt Ltd (SPPL), a South India-based real estate developer. The company is also part of the Rs 90,000-crore Shriram Group.

Sprout Capital Advisors advised Shriram group on the transaction.

With this transaction, TOF has consummated its second investment outside of the Tata Group taking its total commitments to almost 50 per cent of the fund. The fund earlier invested Ginger Hotels (economy hotel chain), Tata Sky (pay TV player) and Varroc Engineering (auto component companies). The fund has been invited to nominate persons for appointment onto the Board of SPPL.

Shriram Properties has more than 50 million sq ft under development across Bengaluru, Chennai, Coimbatore, Kolkata, Vishakhapatnam and Hyderabad. SPPL has previously received investments from global and domestic investors including TPG, Walton Street Capital, Starwood Capital, ASK Real Estate, Prudential ICICI, Sun Apollo and Amplus.

"The fund believes that the residential real estate market, particularly mid-market housing, should see high growth on the back of increasing urbanisation, changing demographics and an up-turn in the economy. Companies like Shriram Properties with its professional management team and differentiated business model are well-placed to benefit," Padmanabh Sinha, Managing Partner at TOF said.

"The fund is actively pursuing investments into other such companies that have a history of operational excellence and robust governance led by dynamic management teams," Sinhala added.

"Our partnership with TOF added to the company's brand, track-record, experienced team and other high-quality partners, positions Shriram Properties favourably for an IPO in the near future," M. Murali, Managing Director at Shriram Properties said.