Shriram Properties Limited (SPL), a leading mid-market and mid-premium focused residential real estate developer, has announced a significant expansion of its portfolio in Bengaluru. The company has signed a Joint Development Agreement (JDA) for approximately 6.5 acres of prime land in North Bengaluru, marking a strategic move to strengthen its presence in one of India's most dynamic real estate markets.

Project Details

The proposed development on this newly acquired land is set to be a premium residential apartment project with the following key features:

• Saleable area: Approximately 0.6 million square feet
• Estimated Gross Development Value (GDV): ₹500.00 crores
• Location: Adjacent to the upcoming large state park in Yelahanka, North Bengaluru
• Project Launch: Planned for the next fiscal year

Strategic Location

The project's location is particularly noteworthy, as it will overlook the proposed Madapanahalli Biodiversity Park. This upcoming park, spread across 154 acres of eucalyptus plantations, is set to feature:

• A medicinal garden
• An aviary
• A zoo
• A tree park

This strategic positioning is expected to significantly enhance the project's appeal to potential homebuyers seeking a blend of urban living and natural surroundings.

Company's Vision

Akshay Murali, Vice President – Business Development at Shriram Properties, expressed enthusiasm about the project, stating, "This project marks a significant milestone in our journey to create landmark developments that blend luxury living with ecological harmony. Yelahanka's evolving landscape and its proximity to the upcoming biodiversity park make this location truly unique. We are excited to bring a thoughtfully designed residential experience to this vibrant part of Bengaluru."

Impact on Business Strategy

This land acquisition aligns with Shriram Properties' asset-light growth strategy. It not only strengthens the company's project pipeline but also reinforces its growth momentum in the Bengaluru real estate market. The move demonstrates SPL's commitment to creating high-quality living spaces that integrate seamlessly with the natural environment while contributing to Bengaluru's evolving urban landscape.

Company Background

Shriram Properties Limited has established itself as a prominent player in India's residential real estate sector, with a focus on mid-market and mid-premium segments. The company has a strong presence in key markets including Bangalore, Chennai, Pune, and Kolkata. SPL has delivered 48 projects with a saleable area of 28.3 million square feet, primarily in Bengaluru and Chennai, with recent expansions in Kolkata.

The company's current development pipeline comprises 39 projects with an aggregate development potential of 36.00 million square feet, including 19.00 million square feet of ongoing projects.

This latest land acquisition in North Bengaluru further solidifies Shriram Properties' position in the market and sets the stage for continued growth in one of India's most promising real estate destinations.

Shriram Properties Limited (SPL) has kicked off the fiscal year with a stellar performance, reporting its strongest first quarter to date. The real estate developer showcased robust growth across key metrics, setting a positive tone for the year ahead.

Record-Breaking Sales and Collections

SPL achieved its highest ever Q1 sales volume of 0.82 million square feet, marking a 17% year-on-year increase. The sales value stood at INR 441.00 crore, also up by 17% compared to the same period last year. This growth was driven by healthy demand across the company's key markets, particularly in the mid-market and mid-premium housing segments.

Collections reached a record high of INR 388.00 crore for a first quarter, representing a 5% year-on-year increase. This strong collection performance is expected to gain further momentum in the coming quarters.

Successful Project Launches and Handovers

The company made a significant entry into the Pune market with its maiden project, Codename Superstar, which received an exceptional response. Within the first four weeks of launch, the project sold over 150 units, demonstrating strong brand acceptance in the new geography.

Construction progress remained robust across key markets of Bangalore, Chennai, and Pune. SPL handed over more than 740 homes and plots during the quarter, its best-ever first-quarter performance in terms of deliveries.

Financial Highlights

The company maintained a healthy gross margin of 34%.

Strategic Expansion and Future Outlook

Shriram Properties added one new project in Bangalore with a Gross Development Value (GDV) of INR 200.00 crore during Q1. The company is actively expanding its project pipeline, with six projects totaling approximately 3 million square feet nearing closure.

Management maintained its guidance for 3,300-3,600 unit handovers and expects revenue of INR 1,250.00-1,300.00 crore for the fiscal year.

Financial Position

As of the end of Q1, Shriram Properties' gross debt stood at INR 567.00 crore, with a net debt-to-equity ratio of 0.28, which is among the lowest in the sector.

Murali M, Chairman and Managing Director of Shriram Properties, commented on the results: "We are pleased to report that Shriram Properties has started the year on a very strong note, delivering record operational performance and robust financial results while maintaining a healthy growth trajectory for the remainder of the year."

With a strong start to the fiscal year and a positive outlook for the real estate sector, Shriram Properties appears well-positioned to capitalize on the growing demand in its core markets and deliver sustained growth for its stakeholders.