Shriram Properties Sells Land Parcel in Chennai to Boost Residential Focus

31 Dec 2024 , 12:42 AM

Shriram Properties Ltd. (SPL) has sold a 3.9-acre land parcel located on GST Road in Chennai to a well-known healthcare and educational group from South India. The land is owned by SPL through its subsidiary, SPL Shelters Private Ltd.

Strategically located land site, abutting a fully functional 4 million square feet office complex and a 2 million square feet residential project, Shriram Park 63. This has strong potential for commercial or retail development.

It was approved for development as retail space initially, but due to the fact that the company focuses more on residential real estate, SPL decided to sell this land to monetize a non-core asset and plough those proceeds back into growth in residential development.

Murali M, CMD of SPL stated this sale is part of a larger strategy to unlock value from its non-core land holdings and redeploy the capital for funding future growth initiatives. In pursuance of this policy, SPL will focus more on residential projects, and also target the mid and mid-premium segments.

The company is very aggressive with expansion plans, as the company would add 20 million square feet over six years on top of an existing inventory of 42 million square feet and intends to add growth in areas like Chennai, Bengaluru, Kolkata, and Pune.

The company also plans to increase its sales value to ₹5,000 crore by tripling revenues to ₹3,000 crore and quadrupling profits to over ₹260 crore in the next three years, based on its new brand identity, SPL NxT.