Chennai based Shriram Properties, the real estate arm of financial giant Shriram Group has decided to focus on affordable housing after the government’s decision to accord infrastructure status to this segment as well as provide other tax sops and interest subvention to home buyers and builders. They
will be investing Rs 15,000 crore over the next 7-8 years for the development of around 30 ongoing projects, largely residential, across six major cities.
The company’s Managing Director M Murali said that they have completed and delivered about 15 million sq ft and are currently developing 25-30 projects comprising 60 million sq ft area in Chennai, Bengaluru, Hyderabad, Vizag, Coimbatore and Kolkata. Out of 60 million sq ft, about 18 million sq ft is already under construction and work on remaining would start in phases.
On proposed investment in these projects, Murali said that the total investment on construction will be around Rs 15,000 crore, which would be met through internal accruals and bank loans.
The company has raised about USD 460 million from investors at entity level as well as projects level but it does not have plans to raise further amount.
Walton street, Starwood capital, TPG Capital, Tata Opportunities Fund, HYPO, Sun Apollo, ASK, Motilal Oswal, Amplus, ICICI Prudential have invested in Shriram Properties.
Murali said that the company is likely to achieve sales bookings of Rs 950 crore this fiscal as against Rs 750 crore last year. The company is also targeting sales bookings of Rs 1,350 crore for next fiscal.
Shriram Properties is also planning to enter Mumbai property market next fiscal where its focus will be on mid-market and affordable housing and little bit of luxury. Shriram Properties has a land bank of 1,200 acres for future development.