Shriram Properties plans to foray into mall development, hospitality projects

Bangalore: Shriram Properties, which has 73 million sq ft of projects lined up across the country, will soon set up separate subsidiaries for foraying into mall development and hospitality projects.

Speaking to reporters at a function to unveil the company’s new corporate identity, Mr M. Murali, Managing Director, Shriram Properties India, said that the company is in talks with global mall developers and hospitality partners for the same.

Investment envisaged is around Rs 250 crore per asset in the retail category and Rs 20-30 crore per asset in the hospitality sector. The company currently has about two million sq ft of mall space being developed in Chennai, Bangalore and Kolkata and would look at an additional three million in the next few years, he said.

Unveiling the new blue and green logo for the property development business of the Rs 25,000-crore Shriram Group, Mr A.R.P. Raman, Global Head, Marketing, Shriram Properties, said that the company’s image makeover would be in tune with its plans to establish itself as a premier property development firm and to expand its operations across the country.

Mr Murali said that the company intends to cover the entire spectrum of real estate development and will also launch budget homes priced below Rs 15 lakh per unit.

Shriram Properties currently has a land bank of 1,520 acres and has so far delivered five million sq ft of space in residential complexes, IT parks, SEZs, malls and leisure homes.

The company’s footprint covers Bangalore, Chennai, Coimbatore, Mysore, Visakhapatnam and Kolkata.

The company posted revenues of Rs 450 crore in March 2008 and its property value is estimated at Rs 23,000 crore. Investment firms Walton Street Capital, Sun Apollo and Starwood Capital have infused about Rs 891 crore into the company so far.