Shapoorji Pallonji Group establishes House for Real Estate assets across India

According to a report in The Economic Times, the Shapoorji Pallonji Group has established a brand-new holding company, Shapoorji Pallonji Real Estate (SPRE), in order to consolidate its real estate holdings scattered throughout India.

As per the report, the company plans to raise around $800-900 million in the first phase through an initial public offering of about 10-12 percent stake. Further reductions could follow, taking the total fundraising to around $2 billion.

The company also plans to monetize the assets by putting the company on the market soon. The company wants to make its portfolio, which includes land parcels covering 2,000 acres, more valuable by streamlining its operations and making it easier to make money from them.

According to the report, the assets are worth about $6 billion. According to the report, Venkatesh Gopalakrishnan, the managing director and chief executive officer of the new entity, stated, "Creating a unified holding company and consolidating assets under this entity is in line with our strategic vision to streamline operations and enhance value creation."

"We are positioning SPRE to leverage its scale by bringing our diverse real estate portfolio together to drive operational efficiencies and foster greater growth opportunities”, he added.

The 45 land parcels and projects in the group's real estate portfolio are included in SPRE. The assets are primarily located in five major cities: Kolkata, Mumbai, Pune, and Bengaluru.

It also owns a lot of land in Nagpur and Mysuru. According to Gopalakrishnan, the portfolio has a potential revenue of up to Rs.200,000 crore after development, and the consolidation improves the company's capacity to carry out large projects and, as a result, gives investors’ confidence by ensuring transparency and maximum returns. In the first phase, the company intends to raise approximately $800-900 million through an initial public offering of approximately 10-12 percent stake, according to the report. The total amount raised could rise to around $2 billion through additional debt investments.