Realty firm Shriram Properties Ltd (SPL) announced the sale of a 3.9-acre land parcel in Chennai to a leading healthcare and educational group from South India. The transaction, executed through SPL’s wholly-owned subsidiary SPL Shelters Private Ltd, aligns with the company’s strategy to monetise non-core assets and channel resources into its core focus on residential real estate development.
The land parcel, strategically located on GST Road, was previously approved for retail development. It is adjacent to a fully operational 4 million square feet (msf) office complex and the 2 msf residential project Shriram Park 63. While the location holds significant potential for retail or commercial ventures, SPL chose to divest the asset to prioritise its primary business activities.
In a statement, Shriram Properties highlighted that the sale is part of its broader strategy to optimise its portfolio by divesting non-core assets and redeploying capital into growth-focused residential developments, especially in the mid and mid-premium segments.
“The value unlocking from its non-core land parcel is an integral part of SPL’s guided strategy of staying focused on residential development, with greater emphasis on mid and mid-premium segments and use of monetisation proceeds for fueling growth in the coming years,” the company said.
Murali M, Chairman and Managing Director of SPL, underscored the importance of this transaction in achieving the firm’s financial and operational goals: “This transaction marks a significant step in the company’s plan to unlock value from existing non-core land parcels and redeploy capital for growth funding needs. We believe this move reinforces our commitment to prudent financial management and allows us to focus on accelerating growth in the residential projects across our portfolio.”
On December 31, 2024, Shriram Properties share price traded 4.50% higher at ₹108.05 at 11:14 PM (IST), while the BSE benchmark Sensex plunged by 194.43 points to 78,053.71. Shriram Properties share price reached a 52-week high of ₹147.50 on September 5, 2024, and a 52-week low of ₹91.15 on June 4, 2024. As per BSE, the total traded volume for the stock stood at 1.25 lakh with a turnover of ₹1.35 crore.
At the current price, Shriram Properties shares are trading at a price-to-earnings (P/E) ratio of 32.06x, based on its trailing 12-month. Whereas the market cap stood at ₹1,840.66 crore.
As of September 30, 2024, promoters held a 27.94% stake in Shriram Properties shares, while Foreign Institutional Investors (FIIs) owned 0.97%, and Domestic Institutional Investors (DIIs) held 3.30%
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Published on: Dec 31, 2024, 11:58 AM IST
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