Shares of Shriram Properties saw a significant increase on Tuesday, rising by 5.65% to reach ₹109.45 per share on the National Stock Exchange (NSE). The rise in stock price came after the company announced the sale of a 3.9-acre land parcel in Chennai to a prominent healthcare and educational group based in South India.
The land, which is owned by Shriram Properties through its wholly-owned subsidiary, SPL Shelters Private Limited (SPL), is located on the strategic GST Road in Chennai. The parcel has been approved for retail space development, making it an attractive opportunity for commercial expansion. The site is situated adjacent to a fully operational 4.0 million square feet (msf) office complex and a 2.0 msf residential development, "Shriram Park 63," further enhancing its appeal for retail and commercial ventures.
However, despite the land’s potential for growth, Shriram Properties has decided to monetize this asset through a divestment, focusing on redeploying capital into its core business. The company’s primary focus remains on residential real estate development, and the decision to sell the land aligns with its strategy to streamline operations and allocate resources more efficiently toward its residential projects.
Murali M, Chairman and Managing Director 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.”
Shriram Properties, a well-known player in the South Indian real estate market, specializes in mid-market and affordable housing. The company is one of the leading residential developers in the region, ranking among the top five in terms of units launched in major cities like Bengaluru, Chennai, and Hyderabad. Known for its commitment to high-quality construction, Shriram Properties has built a reputation for delivering projects that cater to the growing demand for affordable housing.
The decision to sell the land aligns with Shriram Properties’ focus on expanding its residential portfolio, as the company continues to address the housing needs in India’s rapidly growing urban centers. The sale of this land parcel is expected to provide the company with additional liquidity, allowing it to fund new projects and accelerate the development of its ongoing residential initiatives.
At the close of trading on Tuesday, Shriram Properties’ stock stood at ₹107.28 per share, 3.03% higher, as compared to the previous close of ₹104.12 per share on the National Stock Exchange.
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