Shriram Properties to invest Rs 1600 crore, acquire stressed assets of other builders
Shriram Properties, part of the diversified conglomerate Shriram Group, would look at acquiring ‘stressed assets’ of other builders, as part of its growth plans, which include lining up of investments of about Rs 1,600 crore, a top official said. The Bengaluru-based company would look at developing residential properties and also setting up commercial establishments particularly in Chennai and Bengaluru, Shriram Properties, Managing Director, M Murali said here.
“We will be investing close to Rs 1,000 crore. It will be in the residential segment. Another Rs 500-Rs 600 crore will be made in commercial properties”, Murali told reporters. Stating that there has been huge gap between demand and supply in real estate sector, he said, “land prices is expected not to rise in next two years”.
The industry was also expected to become more brand conscious over the next two years as several players may exit the business due to lack of funds and branded realty operators would alone exist.
He said the company would acquire ‘stressed assets’ or take up those ‘projects’ that were left incomplete by realty players and added that currently it was holding active discussion to acquire “stressed assets”.
Stating that the company has taken up several projects in Chennai, Bengaluru, Hyderabad, Kolkata, Coimbatore, Vishakapatnam, he said with the new projects the company would be focus more on Chennai and Bengaluru. The company has already completed 18 million square foot projects and currently 20, million square foot projects were under various stages of construction, he said. “We are looking at a very large land portfolio of 60 million in the next two years”, he said.
The company’s new residential projects would be in the Rs 35 lakh to Rs 80 lakh segment and the company would also set up a commercial mall in the famous Grand Southern Trunk road near Chennai, he said.