Shriram Properties to invest Rs 500 crore in affordable housing plan
Real estate firm Shriram Properties is set to hop onto the affordable housing bandwagon. The Bangalore-based firm proposes to invest over Rs 500 crore into mid-income housing projects that it will develop across India.
By M Rochan, |
BANGALORE: Real estate firm Shriram Properties (SPL) is set to hop onto the affordable housing bandwagon. The Bangalore-based firm proposes to invest over Rs 500 crore into mid-income housing projects that it will develop across India over the next 2-3 years.
The first of these projects will be located off GST Road in Chennai at an investment of Rs 100 crore. ���We see a huge demand for affordable housing in India, more so in tier-I cities. In a rapidly growing economy like ours, the services and ancillary industries employ thousands of executives. Not everyone can afford a home in the Rs 40-60-lakh bracket. We expect to sell apartments in the sub-Rs 30 lakh category,��� said Shriram Properties managing director M Murali.
The first project will see the company develop 2.2 million sq ft on a 35-acre plot-this includes 1,700 residential units priced between Rs 18-23 lakh. SPL will replicate this model across the country, picking up a 35-50 acre parcel for each of its projects.
According to Mr Murali, the company is close to acquiring a second patch of land in Chennai for a similar project, while advance negotiations are underway for land parcels in Bangalore (near Devanahalli), Mangalore, Coimbatore, Madurai and Kolkata. A major source of funding for each will be through pre-sales, which would account for about 80% of the required funds. This apart, SPL���s upcoming ventures will also be backed by US-based realty investment major Walton Street Capital - the firm picked up a stake in SPL, at the enterprise level, last October.
The first of these projects will be located off GST Road in Chennai at an investment of Rs 100 crore. ���We see a huge demand for affordable housing in India, more so in tier-I cities. In a rapidly growing economy like ours, the services and ancillary industries employ thousands of executives. Not everyone can afford a home in the Rs 40-60-lakh bracket. We expect to sell apartments in the sub-Rs 30 lakh category,��� said Shriram Properties managing director M Murali.
The first project will see the company develop 2.2 million sq ft on a 35-acre plot-this includes 1,700 residential units priced between Rs 18-23 lakh. SPL will replicate this model across the country, picking up a 35-50 acre parcel for each of its projects.
According to Mr Murali, the company is close to acquiring a second patch of land in Chennai for a similar project, while advance negotiations are underway for land parcels in Bangalore (near Devanahalli), Mangalore, Coimbatore, Madurai and Kolkata. A major source of funding for each will be through pre-sales, which would account for about 80% of the required funds. This apart, SPL���s upcoming ventures will also be backed by US-based realty investment major Walton Street Capital - the firm picked up a stake in SPL, at the enterprise level, last October.
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