ASK Property Fund exits Shriram Properties' 49-acre plotted development project in Bengaluru

Launched in 2022, Shriram Pristine Estate was the first project under SPL-ASK co-investment platform involving an investment of ₹85 crore from partners

ASK Property Fund, the real estate private equity arm of Blackstone-backed ASK Asset & Wealth Management Group, has made a ‘successful early exit’ from Shriram Pristine Estates, a 49-acre plotted development project in Doddaballapura, Bengaluru.

ASK Property Fund exits Shriram Properties' 49-acre plotted development project in Bengaluru(Shriram Properties Limited)

Launched in 2022, Shriram Pristine Estate was the first project under SPL-ASK co-investment platform involving an investment of ₹85 crore from partners.

ASK Property Fund has realised an internal rate of return of 20% and an investment multiple of 1.24x on their investment in less than 18 months, the company statement 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,” said Lakshmipathi Chockalingam, Managing Partner - South, ASK Property Fund.

In addition to Shriram Pristine Estates, the SPL-ASK platform has invested over ₹200 crore in Shriram 122West in Chennai, launched in January 2024.

“We are excited with the successful early exit of ASK Property Fund with significant return on investments…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,” said Gopalakrishnan J, ED and Group CEO of SPL.

Plans on the anvil

Shriram Properties has a development pipeline comprising 42 projects with an aggregate development potential of 42.1 million square feet. The Bengaluru-based player is looking to double its sales to ₹5,000 crore, triple revenue to ₹3,000 crore and quadruple profits to more than ₹250 crore in the next three years.

Earlier this month, Shriram Properties also unveiled a new brand identity - SPLNxT - with an aim to strengthen focus on the mid-market and mid-premium segments.

During the 2023-24 fiscal year, Shriram Properties clocked a net profit of ₹75 crore, while the company's total income came in at ₹987.35 crore. Sales value during the 12-month period touched ₹2,362 crore.