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R. Balaji

Chennai, Sept. 22 Shriram Properties plans to launch projects in the residential, retail, hospitality and commercial segments. A US-based investor has committed funds for the hospitality projects which will give the company a pan-India presence. In the residential segment it is looking at budget homes.

According to its Managing Director, Mr M. Murali, the foray into the retail segment, a diversification for the company which has concentrated on residential and office space, is imminent with land acquired for the projects. The company is in discussion with a strategic partner, a global player in mall development, to promote a special purpose vehicle to implement the project.

It plans to develop over 3 million sq. ft of mall space in Chennai, Bangalore, Visakhapatnam and Kolkata. This is expected to be a Rs 750-crore joint venture.

It also plans to diversify into hospitality, with a US-based investor committing $100 million, said Mr Murali, while declining to divulge the identity of the investor. Shriram Properties would have a minor partner and primarily act as a working partner to identify the land and project locations, and handle development.

The projects are planned in Maharashtra, Rajasthan, Madhya Pradesh, UP and Tamil Nadu. The hotels would be in two- and three-star category. Some single-star facilities would also come up in small towns like Salem and Tiruchi in Tamil Nadu, he said.

The company also hopes to raise Rs 650 crore for residential projects, IT SEZs and a township project spread across various locations. The investors would participate in the projects through special purpose vehicles. The plans include a 125-acre residential project in a Chennai suburb off NH45, two projects — a residential township and an IT SEZ — in Bangalore, and an integrated township and SEZ in Ahmedabad. The company is in discussion with several potential partners for funds including the Indian arm of Hypo Real Estate Bank International, a Germany-based international bank in real estate financing, Mr Murali said.

In the residential segment, the company plans to launch ‘budget homes’ priced at about Rs 15 lakh a unit in Chennai and Bangalore. Spread over 70-80 acres, it would have 500 residential units in each city.

In Chennai, a part of the budget home project would come up in the 125-acre residential project planned off NH45 — about 20 acres would be set aside for the budget homes, while the other apartments would be priced Rs 40 lakh and above.

Shriram Properties has done a soft launch for another residential project in Chennai on the Old Mahabalipuram Road, where over 500 apartments are coming up at Siruseri, about 35 km south of the city, he said.

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