Mitsubishi has now ventured into the Indian real estate market, encouraged by the steady revival of the sector and its immense potential going forward. An investment division of Mitsubishi Corporation headquartered in Japan has signed an agreement with Shriram Properties Limited for partnering in an ongoing big-ticket residential real estate project at Chennai.
This investment from Mitsubishi officially marks its foray into the realty sector in the country. Shriram has previously been the partner for the first real estate investment made in the country by TPG along with other biggies like Starwood Capital, Tata Capital and Walton Street Capital. Mitsubishi will be pumping in close to Rs. 180 crore for getting a stake of 70% in the Shriram Park 63 residential project which is coming up on a prime plot situated along the GST Road, Chennai. The project has more than 1, 450 residential units on offer and encompasses 2 million sq. ft. in total saleable area.
Pre-sales has already been conducted for more than 25% of the entire project which has a total revenue potential of roughly Rs. 1, 000 crore or even more over a period of 3-4 years. Shriram has already delivered more than 2 million sq. ft. in commercial space to Xander next to this residential project. Another 2 million sq. ft. is being constructed under the DM (development management) system. Shriram has previously partnered with investors like Xander, Sun Apollo, Hypobank, ICICI Prudential, Amplus Reality, ASK Property Investment and Motilal Oswal for its projects.