| Company | Value | Change | %Change |
|---|
The company, through its wholly-owned subsidiary — SPL Shelters Private Ltd — owned a 3.9-acre land, currently approved for the development of a retail space.
The land parcel is strategically located on GST Road and is adjacent to a 4 million square feet (msf) office complex that is already fully operational and a 2 msf residential complex (called Shriram Park 63), offering significant potential for retail or other commercial development.
Also Read: Shriram Properties to shift focus from affordable housing to the mid-market segment
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
“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 fueling growth in the coming years,” Shriram Properties said.
Murali M, 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.”
Also Read: Shriram Properties gains 3% on new project launch in Chennai
In August this year, Shriram Properties Chairman and Managing Director Murali Malayappan said it will add 20 million square feet to its existing inventory of 42 million square feet, over the next six years. Real estate projects in Chennai, Bengaluru, Kolkata and its newest market, Pune, are expected to be the key growth drivers.
Malayappan spoke to CNBC-TV18 on the sidelines of an event where the real estate major unveiled its new brand identity, SPL NxT. The company aims to capitalise on the new brand identity to double sales value to ₹5,000 crore, triple revenues to ₹3,000 crore (the company has a revenue sharing model with their joint venture partners), and quadruple profits to over ₹260 crore in the next three years.
Shares of Shriram Properties Ltd ended at ₹103.40, down by ₹0.050, or 0.048%, on the BSE.
(Edited by : Shoma Bhattacharjee)
