Shriram Properties, which is the real estate branch of the massive Rs 25,000 crore Shriram Group, is poised to launch two distinct subsidiaries aimed at advancing projects in the retail and hospitality sectors, according to a leading official at the firm.
M Murali, the managing director of Shriram Properties, revealed that the company has ambitious plans to develop 15 shopping malls and between 70 to 80 budget hotels over the next three to four years. Each shopping mall is expected to attract an investment of Rs 250 crore, while budget hotels will receive funding in the vicinity of Rs 30 to 40 crore.
Initially, the company plans to roll out malls that will cover an area of two million square feet, with a total investment of Rs 700 crore in key cities such as Chennai, Vizag, and Kolkata.
“We are looking at strategic partners who can also bring value to promote mall and hospitality projects,” Murali stated.
SS Asokan, the executive director of Shriram Properties, indicated that the company is in discussions with international players to jointly develop its mall and hotel projects. He refrained from disclosing specific identities but mentioned that the company has engaged with major retail and hospitality giants from the US, Europe, and Japan. These budget hotels will feature prominently in both Tier I and Tier II cities.
Furthermore, Murali outlined the company’s intentions to break into the low-cost affordable housing market in the foreseeable future. For metropolitan areas like Bangalore, the company is aiming to launch housing projects with units priced around Rs 15 lakh each. Meanwhile, in Tier II cities, budget housing options are expected to be available for as low as Rs 10 lakh per unit.
He also noted that the real estate market has already experienced a downturn of roughly 20% and anticipates a further decline of 5-10% over the following six to nine months. However, he optimistically predicts a recovery will occur after the upcoming elections in the US and India next year. Looking long term, he reassured stakeholders that the Indian real estate market remains a dependable investment. Currently, Shriram Properties commands a significant land bank, holding 1,520 acres nationwide while actively developing projects that encompass a total of 73 million square feet.