Shriram Properties, part of Chennai-headquartered diversified Shriram Group, is planning to invest around Rs 4,900 crore in various residential and commercial projects. The company is also planning to raise Rs 500 crore through equity and planning to foray into hospitality sector to become a Rs 1,000 crore revenue company in the next three years.
Speaking to Business Standard Shriram Properties managing director M Murali said that the company had set a target to become Rs 1,000 crore company over the next three years from the present Rs 450 crore.
The proposed investment will be funded through debt, internal accruals, “we are also planning to raise Rs 500 crore through equity,” said Murali. So far the company had raised equity to the tune of Rs 950 crore. Private equity firms Sun Apollo, Starwood Capital and Citigroup are investors in the company.
Murali said, of the Rs 3,700 crore, Rs 1,000-1,200 crore will be invested to develop affordable housing projects in seven million sq.ft of land across southern states and Kolkata and price of each flat would range between Rs 9-20 lakh.
Similarly Rs 2,500 crore will be invested to promote housing projects in 20 million sq.ft of land targeting middle income population. Price would range between Rs 15 lakh and Rs 40 lakh. Most of these projects will be developed as townships.
Speaking about commercial projects, Murali said that so far the company was promoting IT/ITeS projects and delivered one million sq.ft. currently construction is going on at eight lakh sq.ft of land near Chennai. The company also got an approval to pro-mote a special economic zone for ITTeS in Kolkata. Total investment in the proposed project would be around Rs 1,200 crore.
As part of the diversification plan, Murali said, the company is foraying into hospitality and malls. “A budget hotel is proposed at Vishakapatnam and would look at promoting budget to 3-star category hotels and malls in southern states and Kolkata. For both the foray the company is looking for strategic partners,” said Murali.