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ASK Property Fund, the real estate investment arm of Blackstone-backed ASK Asset & Wealth Management Group, has exited its investment in Shriram 122 West, a residential development by Shriram Properties in Mangadu, Chennai. The fund realised INR 340 crore against an investment of INR 215 crore, generating a gross investment multiple of about 1.6 times. The exit was announced on Tuesday, 18 August. ASK had provided growth capital to the project in 2023. Shriram 122 West has approximately two million sq ft of saleable area and is located on the outskirts of Chennai. The investment formed part of a co-investment platform between ASK Property Fund and Shriram Properties focused on residential and plotted development opportunities.
ASK Property Fund, the real estate investment arm of Blackstone-backed ASK Asset & Wealth Management Group, has exited its investment in Shriram 122 West, a residential project developed by Shriram Properties in Mangadu, Chennai, the fund announced on Tuesday, 18 August. ASK realised INR 340 crore from an investment of INR 215 crore, generating a gross investment multiple of approximately 1.6 times. The fund had provided growth capital to the project in 2023.
Shriram 122 West has approximately two million sq ft of saleable area and is located on the outskirts of Chennai. The project was identified as a residential development opportunity under the investment partnership between ASK Property Fund and Shriram Properties. The 2023 investment was made towards the development rights of the project through Shriram Properties’ wholly owned subsidiary, Shrivision Elevations Private Limited.
The project’s initial investment announcement in August 2023 stated that ASK and Shriram Properties were jointly investing INR 206 crore towards 100% of the development rights. The project acquisition formalities had been completed at the time, with the development planned as Shriram 122 West. The project had a total saleable area of 1.9 million sq ft across two phases and was planned to comprise approximately 1,900 residential units, primarily targeting the mid-income segment.
At the time of the 2023 announcement, the project was estimated to have an aggregate revenue potential of INR 1,200 crore over the following five years. It was located in Mangadu, with proximity to the Porur-Manapakkam IT cluster and an upcoming metro corridor. The project’s working capital requirements were to be funded separately from the acquisition investment. ASK had made its investment through the ASK Real Estate Special Opportunities Fund IV.
Shriram 122 West was the second investment under the co-investment platform established by ASK and Shriram Properties in November 2022, with an aggregate capital commitment of INR 500 crore. The platform’s first investment was in Shriram Pristine Estates, a plotted development project. In 2023, the companies had said that the platform was evaluating further co-investment opportunities in plotted and residential developments in Bengaluru, Chennai and Hyderabad.
ASK Property Fund said the investment and exit reflected its approach of providing growth and solution capital to residential projects. Lakshmipathi C, co-head of ASK Property Fund, said the fund continued to work with established residential developers and focus on growth and solution capital for projects in India.
Gopalakrishnan J, chief executive officer of Shriram Properties, said the co-investment platform had provided the developer with access to growth capital for early-stage projects and supported its expansion. The exit marks the completion of ASK Property Fund’s investment in Shriram 122 West, with the fund realising INR 340 crore against its reported INR 215-crore investment.
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