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Shriram Properties and Xander ink $350 million deal for Chennai SEZ

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Shriram Properties and Xander ink $350 million deal for Chennai SEZ

Bangalore: Shriram Properties and Xander Group signed a $350 million (~INR 2290 cr.) deal, creating one of the largest PE deals witnessed in the real estate space in India. With this deal, Xander acquires 100% interest in Shriram’s Gateway SEZ in Chennai for $190 million (~INR 1250 cr.), with a further commitment of $160 million (~INR 1040 cr.) towards expansion of the IT SEZ.  The deal involves 1.7 million square feet of occupied and operational SEZ, and a partnership with Shriram Properties to deliver the under construction 1.9 million square feet.

Shriram Gateway, is a 58-acre integrated township project including office space, a shopping mall and residential apartments.  Shriram will continue to develop and own the residential and retail components comprising 2.6 million square feet while Xander will have the ability to develop an additional 1 million square feet of office space.

“This acquisition demonstrates our continued interest in large, well-positioned assets with growth potential across gateway cities in India, and nicely complements our existing office portfolio," said Rohan Sikri, Senior Partner, The Xander Group.

He further added, “We are pleased to be working with Shriram Properties to expand our existing Chennai footprint.  We see the opportunity to deliver additional high-quality supply in a market where vacancy is rapidly falling.  As always, our team will be focused on tenant experience and satisfaction, which is a high priority across the portfolio.”

Shriram Gateway is the first integrated township in Chennai comprising a large office campus with 4.6 million square feet of SEZ and IT office space. The campus currently provide employment for over 20,000 employees which will grow to an estimated 50,000 employees by 2020. Accenture is currently the largest tenant.

“The project offers a plethora of opportunities and is a source of employment generation across various sectors in Tamil Nadu. The mixed use, commercial cum residential project is a benchmark in the industry, and we plan to develop many such projects across cities in India. We are also delighted to join our hands with The Xander Group and enhance our position as a leader in India’s real estate space.” said M. Murali, Managing Director, Shriram Properties.

“The project is strategically located near Tambaram and is very well connected to both the city and suburbs. Further addition of residential, office and retail space over the next 3 years will make it the most strategic location to invest in Chennai.” he further added.

This comes at the back of the recent announcement by Shriram Properties on their plans to invest Rs 15,000 crore over the next 7-8 years for the development of around 30 ongoing projects, across six major cities - Chennai, Bengaluru, Hyderabad, Vizag, Coimbatore and Kolkata. Shriram Properties holds close to 2% of the FDI in India, the largest by a single developer. Their key investors include Walton Street, Starwood capital, TPG Capital, Tata Opportunities Fund, ASK, Motilal Oswal, Amplus and ICICI Prudential.

About The Xander Group Inc
The Xander Group Inc. is a global investment firm focused on real estate, infrastructure, hospitality, retail and credit in emerging markets. The firm combines industry knowledge, global experience and relationships, and an operational approach in local markets, to build and scale businesses and generate superior long term returns. Since 2005, the firm has committed over US$ 2.3 billion equity capital to the Indian market across private, public, credit and venture investments.

About Shriram Properties
Bangalore based Shriram Properties, the property development arm of the Rs 90,000 crores financial giant Shriram Group, Chennai, is a multi-crore company with nearly Rs 25,000 crores business across the country. The company has so far delivered over 15 million square feet of  residential and commercial built up  space across the country and has another around 60 million square feet is under various stages of development.

Shriram properties have raised till date, PE investments of about US$ 460 million from investors at entity level as well as projects level being largely residential. They have 15 million square feet completed and delivered projects, and 25-30 projects comprising of 60 million square feet area that are currently under development. Shriram Properties has won the prestigious Assocham Award (Associated chamber of commerce and Industry) in three consecutive years from 2013 to 2015, for being the Best Developer in Southern region. The company has also won awards for being the Best Realty Investment Partner in India and the Most Transparent Developer in Southern region.

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