Shriram Properties Embarks on Rs 2000 Crore Expansion Plan to Develop 20 Million Sq Ft of Residential and Multi-Use Properties
Shriram Properties Limited (SPL) has outlined a Rs 2,000 crore expansion plan to develop 20 million sq ft of residential and multi-use properties across its core markets of Bengaluru, Chennai, and Kolkata, while also making its entry into Pune.
Shriram PropertiesReal EstateExpansion PlanResidential PropertiesMultiuse PropertiesReal Estate MumbaiAug 31, 2024
As a part of the Shriram Group, SPL is a leading residential real estate developer, primarily catering to the mid-market and mid-premium segments, focusing on properties in the sub-Rs 2 crore range. Since its inception in 2000, the company has delivered 44 projects with a saleable area of 24.4 million sq ft, mainly in Bengaluru and Chennai, with recent expansions into Kolkata.
The company plans to invest over Rs 500 crore from its own balance sheet, with the remaining funds coming from financial or strategic investors and landowners under Joint Development Agreements (JDAs). This expansion plan is part of SPL's growth blueprint called “SPLNxT,” which aims to double annual sales to Rs 5,000 crore by FY27, triple revenues (income from handovers) to Rs 3,000 crore, and quadruple profits by FY27.
SPL follows an asset-light model, investing about 20% of the total capital required for its projects while sourcing the remainder from external investors. The company has worked with marquee institutional investors, including Starwood Capital, Tata Capital, TPG Capital, Motilal Oswal, and Mitsubishi Corporation.
Currently, 85% of SPL’s projects are residential, with the rest being commercial or multi-use properties. The company has developed a 7.4 million sq ft multi-use project, Shriram Gateway, on the outskirts of Chennai, which has residential units, commercial offices, retail spaces, and a hospital. Upcoming projects in Pune and Kolkata, including a 314-acre township, will also feature a mix of residential units, retail and commercial properties.
We will be adding 18-20 million sq ft on a pan-India basis in the next 18-24 months. The overall capital commitment for deploying this kind of pipeline would be in excess of Rs 2,000 crore,” said Gopalakrishnan J, Executive Director & Group CEO of SPL.
We have a pipeline of 42 projects with the potential to develop 42 million sq ft of properties. We will be adding another 20 million sq ft to that, which will take our total footprint to 62 million sq ft in the next 3 years,” Gopalakrishnan added.
We will scale up annual sales from 4.5 million sq ft in FY24 to 8-9 million sq ft annually by 2027. We are targeting to double future project inventory from 18 million sq ft to 35 million sq ft in the next 18-24 months,” Gopalakrishnan said.
Frequently Asked Questions
What is the value of Shriram Properties' expansion plan?
Rs 2000 crore
What is the target market for Shriram Properties' expansion plan?
Bengaluru, Chennai, Kolkata, and Pune
What is the expected outcome of Shriram Properties' expansion plan?
Doubling of annual sales to Rs 5,000 crore by FY27, tripling of revenues to Rs 3,000 crore, and quadrupling of profits by FY27
What is the investment model followed by Shriram Properties?
Asset-light model, investing about 20% of the total capital required for its projects while sourcing the remainder from external investors
What is the expected increase in Shriram Properties' project inventory?
Doubling of future project inventory from 18 million sq ft to 35 million sq ft in the next 18-24 months
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