Shriram Properties Limited (SPL) has signed a Joint Development Agreement for a six-acre land parcel in Undri, Pune, to develop a mixed-use project featuring over 650 apartments and retail/commercial spaces. With a total saleable area exceeding one million square feet, the project has an estimated revenue potential of INR 700-750 crore and is expected to launch in H2 FY25. SPL also plans to secure rights for an additional eight acres primarily for retail and commercial development.
Shriram Properties Limited (SPL), a leading residential real estate developer in South India, has signed a Joint Development Agreement for a prime six-acre land parcel in the emerging micro-market of Undri, Pune. This project will feature a mixed-use development, including over 650 residential apartments and retail/commercial spaces, with a total saleable area exceeding one million square feet, to be developed over the next four years.
The project is projected to generate an aggregate revenue of approximately INR 700-750 crore. SPL is targeting its launch in the second half of FY25 and envisions creating a landmark residential project in this rapidly growing area of Pune, with easy access to IT/ITeS hubs, retail centres, premium educational institutions, and central areas of the city.
Additionally, SPL has an option to develop an adjacent eight-acre parcel, primarily for retail and commercial use. The company is nearing completion of securing the development rights for this additional land, with expectations to finalise this process soon.
Murali Malayappan, Chairman and Managing Director, noted that the investment aligns with the company's asset-light strategy focused on accelerated growth. He added that the company anticipates launching the project within the current quarter.
SPL's entry into Pune marks a significant strategic move, as Pune is the second-largest residential market in India, with strong growth in recent years. The city's mid-market focus and customer demographics align closely with SPL's core markets of Bangalore and Chennai, supported by a diversified economy and increased infrastructure investments.
This acquisition aligns with SPL's growth strategy to expand its portfolio while remaining asset-light. The development will bolster SPL's robust project pipeline and support growth momentum in the coming years. SPL currently has 42 projects with 42 million square feet of saleable area, including 26 ongoing projects comprising 24.3 million square feet as of June 30, 2024. Nearly 75% of the ongoing projects are already sold, and the company holds 'zero inventory' in completed projects.
In conclusion, this strategic move into Pune marks a significant step for SPL, enhancing its portfolio in one of India's fastest-growing residential markets. With a focus on an asset-light approach, SPL aims to accelerate growth while maintaining a robust project pipeline. The anticipated development is set to meet the demand for quality living spaces and contribute positively to the city's evolving real estate landscape.
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