This real estate company makes a joint investment worth Rs 206 crore with a potential to generate Rs 1,200 crore in revenues!

On Wednesday, shares of the company surged by more than 9 per cent and made an intraday high of Rs 87.5.

Shriram Properties Ltd, a leading residential real estate developer and ASK Property Fund, an alternative asset investment arm of ASK Group, have joined forces in a collaborative investment of Rs 206 crore for full development rights in an ongoing Chennai project. This venture is facilitated through Shriram's wholly owned subsidiary, Shrivision Elevations Private Limited. The project, known as "Shriram 122 West," is situated in Mangadu, strategically positioned near the Porur - Manapakkam IT cluster and the forthcoming metro corridor, providing a competitive edge.

Comprising approximately 1.9 million square feet divided into two phases, the project holds the potential to generate Rs 1,200 crore in revenue over the next 5 years. It encompasses around 1,900 residential units, with a focus on the mid-income demographic. The collaborative investment of Rs 206 crore is allocated for the acquisition, while project working capital requirements will be independently funded. This investment originates from the ASK Real Estate Special Opportunities Fund IV. Notably, Shriram 122 West marks the second joint investment undertaken by the ASK and Shriram co-investment platform, established in November 2022 with a total commitment of Rs 500 crores.

The company has delivered returns of 7 per cent over the past year and returns of 4.8 per cent from the date of its listing in December 2021. Additionally, the company has a ROCE of 10.1 per cent and a ROE of 5.66 per cent.

On Wednesday, shares of the company surged by more than 9 per cent and made an intraday high of Rs 87.5. Additionally, the scrip had a spurt in volume by more than 4.51 times.

Investors should keep a close eye on this trending stock.

Disclaimer: The article is for informational purposes only and not investment advice.