Shriram Properties, which is in talks to sell a portion of its IT Special Economic Zone in Chennai, is looking at developing two large township sized residential projects in the suburbs.

According to sources in the know, it has acquired a 28-acre parcel of land, from a local developer at Padur on the Old Mahabalipuram Road. It will develop over 1.5 million square foot of built-up space. The land value is estimated at about Rs 4 crore an acre.

It has also entered into a joint venture on a larger development project at Medavakkam, another suburb to the South of the city.

The company is using its commercial, leased-out assets to generate funds for further expansions.

As a part of this move, it is in talks with potential buyers to sell 1.2 million sq ft of built-up space at its IT SEZ near Chennai.

Ascendas is the main contender for the property, which now fetches a lease rental of about Rs 40 a square foot – a monthly lease income of Rs 4.8 crore. The deal is estimated at about Rs 500 crore. Others exploring this opportunity are Xander, Maple Tree and IDFC, the source said. KPMG is mediating the deal, the source added.

The funds will be deployed towards further expansion including a residential project adjacent to the SEZ. This residential development will be over 2.3 million sq ft spread over an 18-acre parcel of land adjacent to the SEZ, sources said.

It will continue with its plans to develop the balance SEZ space of about 4 million sq ft of built-up space.

Shriram Properties is keen on acquiring fresh assets in the initial stage of development, according to the sources. It is in discussions with Marg Ltd to acquire the Marg Junction, a mall under construction on the OMR.

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