Shriram Properties Enters Pune Market with Strategic Development Agreement

Shriram Properties Limited (SPL) announced that it has signed a Joint Development Agreement for a prime 6-acre land parcel in the rapidly growing micro market of Undri, Pune. 

This ambitious mixed-use development project will feature over 650 residential apartments alongside retail and commercial spaces, boasting a total saleable area exceeding 1.0 million square feet. With an estimated revenue potential of approximately ₹700 to ₹750 crores, SPL plans to launch this project in the second half of FY25.

Strategic Entry into Pune’s Growing Real Estate Market

The Undri project is strategically located, offering seamless access to IT and IT-enabled services, retail outlets, prestigious educational institutions, and key areas within the city. Additionally, SPL has an option for the development of an adjacent 8-acre, predominantly focused on retail and commercial spaces. The company is currently finalizing the acquisition of development rights for this additional land, which is expected to be completed shortly.

This entry into the Pune market aligns with SPL’s strategy of tapping into one of India’s largest and most vibrant residential markets. Pune has shown robust growth in recent years, primarily in the mid-market segment, making it an attractive location that complements SPL’s core markets of Bangalore and Chennai. The city is supported by a diverse economy and significant infrastructure investments.

The acquisition of this project is a critical component of SPL’s growth strategy as it aims for accelerated expansion while maintaining an asset-light approach. With a strong pipeline of 42 projects and nearly zero inventory in completed projects, SPL is well-positioned to capitalise on the ongoing demand for residential properties in the region.

Management Commentary

Commenting on the significant development, the Chairman and Managing Director of SPL, Mr Murali Malayappan, said, “This investment is consistent with our asset-light strategy for accelerated growth. Pune is a promising market, and we see significant potential for large, established brands like Shriram. Owing to its proximity to IT/ITeS, Undri emerges as a vital micro market witnessing significant demand in recent years. We are looking forward to the project launch during this quarter and remain committed to delivering top-notch quality swiftly and ensuring utmost satisfaction for our customers”.

On October 30, 2024, Shriram Properties share price opened at ₹108.70, touching the day’s high at ₹111.30, as of 10:07 AM on the NSE.

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