Shriram Properties Sells 3.9-Acre Land In Chennai To South Indian Healthcare And Education Group

Real estate firm Shriram Properties Ltd. announced on Monday that it has sold a 3.9-acre plot of land in Chennai as part of its strategy to monetise non-core assets.

In a regulatory filing, the company stated that the land was sold to a major healthcare and educational group based in South India.

The deal value and the buyer’s name were not disclosed by Shriram Properties Ltd.

The 3.9-acre land, owned by the company through its fully owned subsidiary SPL Shelters Pvt Ltd., was approved for the development of retail space.

"However, given the company's predominant focus on residential real estate development activities, SPL (Shriram Properties) has decided to monetise the land through divestment of its equity holding in the wholly owned subsidiary."

Murali M, chairman and managing director of SPL, said, "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." The move reinforces its commitment to prudent financial management, allowing the company to focus on accelerating growth in the residential projects, he said.

Shares of Shriram Properties closed 0.68% higher at 104.12 per share on the National Stock Exchange. In contrast, the benchmark Nifty fell by 0.71%. The stock has fallen 16.07% in the last 12 months and 14.9% on a year-to-date basis.

One analyst monitoring the company recommends a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price targets suggests a potential upside of 57.5%.

(With inputs from PTI.)