Shriram Properties, a Bangalore-based real estate company, announced that it is raising INR450 crore from private equity investors. The capital raised from the program will be used to purchase several residential real estate projects in Chennai and Bangalore. The real estate business unit of the US$9 billion Shriram Group is now discussing with current investors such as ASK Property Investment Advisors, TPG, Kotak Real Estate, Sun Apollo, and  ICICI Prudential Asset Management Company. The firm expects to close the fund before the year ends.

"The company is currently doing due diligence on four projects in Bangalore and three in Chennai totaling 200 acres with a development potential of 70 million sq. ft. While six of the proposed acquisitions is land with all approvals, the other is an incomplete residential project," sources with knowledge of the deal said.

"The proposed money will come in separate special purpose vehicles (SPV) that will be created to purchase mostly discounted real estate assets from the market. While Shriram Properties will invest 250 crore, the remaining amount will come from private equity funds," Shriram Properties executive director, SS Asokan, said confirming the fund raising. He gave no further details.