Shriram Properties plans to expand into Kolkata after nearly 20 years of operations in Bengal, encouraged by sales of premium villas and plotted developments at its Uttarpara township. The Bengaluru-based developer is assessing opportunities in areas including Rajarhat and Alipore, with each potential project expected to have a gross development value of Rs. 5-6 bn.

The company entered Bengal by acquiring 314 acres in Uttarpara from Hindustan Motors, the maker of Ambassador cars. Development began more than a decade after the acquisition amid land-related issues, but Shriram said those disputes were resolved in February after it transferred 42 acres to the state government.

Shriram is considering joint development arrangements with local partners that can provide suitable land parcels, particularly in Rajarhat. National developers have had a limited presence in Kolkata, where the real estate market has largely been led by local companies. The developer believes its experience in completing the Uttarpara project has created a platform for wider expansion in the state.

The company has completed or undertaken 6 mn square feet of development at Uttarpara, comprising apartment towers, individual villas and plotted bungalows. It retains 147 acres for development during the rest of the decade and expects to invest Rs. 40 bn in the next phase.

The remaining township is planned to include another 7-10 mn square feet of development. The proposed facilities include more apartment towers and villas, a shopping mall, an office complex, a senior living project, a school and a hospital. Shriram intends to appoint separate operators for the mall, school and hospital while concentrating on property development.

The company had previously considered monetising part of the remaining township, but strong demand for its premium offerings led it to retain the land for in-house development. The Uttarpara project is therefore expected to remain the core of its Bengal strategy while the company evaluates larger opportunities in Kolkata.