Shriram Properties sells mall land in Chennai for ₹93 crore

Shriram Properties Limited (SPL), a leading real estate developer, has sold 3.9 acre land parcel in Chennai to a large healthcare and educational group in South India. The company did not disclose the buyer’s name.

The value of the deal is ₹93 crore, said sources.

The company, through its wholly-owned subsidiary – SPL Shelters Private Limited – owned the 3.9 acre land, currently approved for the development of a retail space. The land parcel is located on the GST Road and adjacent to a 4 million sq ft (MSF) office complex that is already fully operational and a 2 MSF residential complex (called Shriram Park 63), offering potential for retail / other commercial development, says a company release.

However, given the company’s predominant focus on residential real estate development activities, SPL has decided to monetise the land through divestment of its equity holding in the wholly owned subsidiary.

Value unlocking

The value unlocking from its non-core land parcel is an integral part of SPL’s guided strategy of staying focused on residential development, with greater emphasis on mid and mid-premium segments and use of monetization proceeds for fuelling growth in the coming years.

Commenting on the development, M Murali, CMD of SPL said: “This transaction marks a significant step in the Company’s plan to unlock value from existing non-core land parcels and redeploy capital for growth funding needs. We believe this move reinforces our commitment to prudent financial management and allows us to focus on accelerating growth in the residential projects across our portfolio.”

SPL, primarily focused on the mid-market and mid-premium segments. SPL’s key markets include Bangalore, Chennai and Kolkata, which together account for nearly 85 per cent of its development activities and is proposing an entry into the Pune markets soon.

SPL has delivered 46 projects with a saleable area of 25 MSF, mostly in Bengaluru and Chennai and in recent years at Kolkata. It has development pipeline comprising of 42 projects with an aggregate development potential of 40.2 MSF, as of September 30, 2024, the release said.