Shriram Properties Sells ₹93 Crore Chennai Land for Expansion Plans

Shriram Properties Limited (SPL) has divested a 3.9-acre land parcel located on GST Road in Chennai for ₹93 crore. This sale, executed through its subsidiary SPL Shelters Private Limited, is in line with the company's ongoing strategy to unlock value from its non-core assets to support its future growth initiatives. The buyer of the land has not been disclosed, but it is believed that a major South Indian healthcare and educational group has acquired the parcel. The land was previously approved for retail space development, offering significant potential for commercial or retail development in a prime location.

Located on GST Road, one of Chennai's bustling corridors, the land sits adjacent to two major developments: a 4 million square feet (MSF) office complex and a 2 MSF residential project, Shriram Park 63. This location is considered highly strategic due to its proximity to significant commercial and residential hubs. Despite the strong potential for further development in this area, Shriram Properties has decided to divest the land to stay focused on its core business—residential real estate development.

The decision to sell the asset is a reflection of SPL’s long-term strategy to streamline its operations and concentrate on residential properties, particularly in the mid-market and mid-premium segments. By monetizing non-core assets, the company aims to generate funds that can be reinvested into its residential development pipeline. The proceeds from the sale will be directed towards accelerating the growth of the company’s primary business, ensuring a robust financial position while reducing reliance on external funding sources.

M. Murali, the Chairman and Managing Director of Shriram Properties, explained that the sale marks an important step in unlocking value from the company’s non-core land holdings. He emphasized that this decision supports the company’s commitment to prudent financial management and helps accelerate its growth in residential projects. The move is consistent with the company’s efforts to remain focused on its key markets—Bengaluru, Chennai, and Kolkata—where it has built a strong presence. These markets account for about 85% of the company’s development activities, and SPL plans to continue expanding its footprint within these regions.

SPL has been active in the real estate market for years, delivering a total of 46 projects that span over 25 MSF of saleable area. As of September 30, 2024, the company has 42 projects in its development pipeline, amounting to a total potential of 40.2 MSF. This divestment aligns with the company’s strategy of optimizing its capital allocation by focusing on mid and mid-premium residential developments, which are expected to drive the company’s growth in the coming years.

In addition to its focus on residential projects, Shriram Properties has been preparing to expand into the Pune market, further diversifying its geographic presence. With a significant project pipeline and a strategic focus on residential development, the company aims to meet the growing demand for housing in India, especially in the mid-market and mid-premium segments.

This strategic divestment is part of a broader plan by Shriram Properties to streamline its operations and allocate resources more efficiently. By offloading assets that do not align with its long-term goals, SPL is positioning itself to stay competitive in the rapidly growing Indian real estate market.