Aims to become a Rs 1,000 cr company in three years
Shriram Properties, part of the Chennai-headquartered diversified Shriram group, is planning to invest around Rs 4,900 crore in various residential and commercial projects.
It would also enter the hospitality sector to achieve its target of becoming a Rs 1,000 crore company over the next three years from the current Rs 450 crore.
Speaking to Business Standard, Shriram Properties managing director M Murali said the proposed investment would be funded through debt and internal accruals. Besides, the company is also planning to raise Rs 500 crore through equity. So far, it has raised Rs 950 crore from private equity firms Sun Apollo, Starwood Capital and Citigroup.
The company would invest Rs 1,000-1,200 crore for developing affordable housing projects on seven million sft of land across the southern states and Kolkata.
It would invest another Rs 2,500 crore for promoting housing projects on 20 million sft of land targeting middle income population. Most of these projects will be developed as townships.
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Speaking about commercial projects, Murali said the company was promoting IT/ITeS projects and has delivered one million sft. It was creating another 800,000 sft of land near Chennai. The company has also received approval to promote a special economic zone for IT/ITeS in Kolkata. The total investment in the proposed project would be around Rs 1,200 crore.
As part of the diversification plan in the commercial segment, Murali said they were entering hospitality and malls. “A budget hotel has been proposed at Vishakapatnam and we would look at promoting budget to 3-star category hotels and malls in southern states and Kolkata,” he said. For both the ventures, the company is scouting for strategic partners.