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.
“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, on Friday.
Gopalakrishnan explained that SPL would 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).
Navigating the Dynamics of the Evolving Mutual Fund Industry
Glenmark Pharma records surge in Q1 profit at Rs 340.27 crore on strong demand, CMD says confident of meeting FY25 objectives
Info Edge reports Q1 profit at Rs 232.90 cr, posts strong cash generation on sustained billings growth in non-recruitment businesses
Raymond Q1 Results 2024 Live Updates: Profit rises by 26.7% to Rs 57.04 crore, revenue jumps by 98.1% YoY
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.
“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.
SPL follows an asset-light model, investing about 20% of the total capital required for its projects while sourcing the remainder from external investors. Murali M, Chairman and Managing Director of Shriram Properties, highlighted their work 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. For instance, 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.
To mark its 25-year milestone, SPL has launched a growth blueprint called “SPLNxT.” As part of this initiative, Gopalakrishnan announced that the company aims to double its annual sales to Rs 5,000 crore by FY27, triple revenues (income from handovers) to Rs 3,000 crore, and quadruple profits by FY27.
“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 added.
From: financialexpress
Financial News
