Indian Corporates Monetise Non-Core Real Estate Assets
Real Estate

Indian Corporates Monetise Non-Core Real Estate Assets

The sustained upward trend in property markets over the past few years has offered Indian corporations an opportunity to enhance financial flexibility and streamline operations by monetising non-core assets such as land, buildings, and real estate properties. By leveraging favourable market conditions, organisations across various industries have strategically capitalised on these assets nationwide.

This approach has enabled companies to unlock capital tied up in underutilised assets, redirect resources towards core business activities, reduce debt, and improve overall financial health. With property valuations remaining robust, asset monetisation is emerging as a preferred strategy for optimising portfolios and driving long-term growth.

Rohit Berry, Partner and President–Strategy, Risk and Transactions at Deloitte South Asia, remarked that the interplay of appreciating property values, rising infrastructure investments, and economic growth has encouraged Indian companies to prioritise sustainable, value-driven growth. He noted, "The growing trend of monetising non-core real assets demonstrates a dual advantage—enhanced financial flexibility and a sharper operational focus. By channelling capital into core operations, reducing debt, and funding expansion plans, companies are strengthening their balance sheets."

Data from Propstack reveals that leading Indian corporates across sectors such as engineering, telecom, pharmaceuticals, banking, and consumer goods have collectively monetised realty assets worth over Rs 142 billion in the past two years. This includes notable deals such as Kansai Nerolac Paints’ sale of a four-acre land parcel in Mumbai’s Worli to Runwal Realty for approximately Rs 8 billion.

Sandeep Runwal, Managing Director of Runwal Realty, highlighted the economic significance of this trend, stating that it creates opportunities for developers to undertake new projects, fuels growth in the realty sector, and contributes to economic development through infrastructure expansion and job creation. He described asset monetisation as a "win-win for businesses and the economy alike.

Prominent companies like Bombay Dyeing & Manufacturing Company, Hindalco Industries, Vodafone Idea, BSNL, Tata Communications, Suzlon Energy, and Sanofi Healthcare India have either sold non-core assets outright or entered joint development agreements with real estate developers. According to Berry, these transactions not only boost liquidity but align with long-term goals of maximising shareholder value.

The timing has proven advantageous, with real estate values appreciating in key markets, enabling corporations to secure significant returns. Sale-and-leaseback models, allowing businesses to maintain operational continuity while monetising assets, have also gained popularity.

For instance, HDFC Bank, post-merger with HDFC, is selling several non-core real estate assets in urban centres to streamline its property portfolio and enhance liquidity. Similarly, Suzlon Energy monetised its corporate headquarters in Pune through a sale-and-leaseback arrangement to reinvest in business growth. Other notable transactions include Hindalco Industries’ sale of a 24.5-acre land parcel in Thane’s Kalwa locality to Birla Estates for over ?5.37 billion and Bombay Dyeing’s 22-acre Worli land parcel sale to Sumitomo Corporation for over ?50 billion.

This surge in corporate real estate monetisation has brought high-value properties into the market, attracting institutional investors, developers, and real estate investment trusts (REITs), thereby further invigorating the sector.

The sustained upward trend in property markets over the past few years has offered Indian corporations an opportunity to enhance financial flexibility and streamline operations by monetising non-core assets such as land, buildings, and real estate properties. By leveraging favourable market conditions, organisations across various industries have strategically capitalised on these assets nationwide. This approach has enabled companies to unlock capital tied up in underutilised assets, redirect resources towards core business activities, reduce debt, and improve overall financial health. With property valuations remaining robust, asset monetisation is emerging as a preferred strategy for optimising portfolios and driving long-term growth. Rohit Berry, Partner and President–Strategy, Risk and Transactions at Deloitte South Asia, remarked that the interplay of appreciating property values, rising infrastructure investments, and economic growth has encouraged Indian companies to prioritise sustainable, value-driven growth. He noted, The growing trend of monetising non-core real assets demonstrates a dual advantage—enhanced financial flexibility and a sharper operational focus. By channelling capital into core operations, reducing debt, and funding expansion plans, companies are strengthening their balance sheets. Data from Propstack reveals that leading Indian corporates across sectors such as engineering, telecom, pharmaceuticals, banking, and consumer goods have collectively monetised realty assets worth over Rs 142 billion in the past two years. This includes notable deals such as Kansai Nerolac Paints’ sale of a four-acre land parcel in Mumbai’s Worli to Runwal Realty for approximately Rs 8 billion. Sandeep Runwal, Managing Director of Runwal Realty, highlighted the economic significance of this trend, stating that it creates opportunities for developers to undertake new projects, fuels growth in the realty sector, and contributes to economic development through infrastructure expansion and job creation. He described asset monetisation as a win-win for businesses and the economy alike. Prominent companies like Bombay Dyeing & Manufacturing Company, Hindalco Industries, Vodafone Idea, BSNL, Tata Communications, Suzlon Energy, and Sanofi Healthcare India have either sold non-core assets outright or entered joint development agreements with real estate developers. According to Berry, these transactions not only boost liquidity but align with long-term goals of maximising shareholder value. The timing has proven advantageous, with real estate values appreciating in key markets, enabling corporations to secure significant returns. Sale-and-leaseback models, allowing businesses to maintain operational continuity while monetising assets, have also gained popularity. For instance, HDFC Bank, post-merger with HDFC, is selling several non-core real estate assets in urban centres to streamline its property portfolio and enhance liquidity. Similarly, Suzlon Energy monetised its corporate headquarters in Pune through a sale-and-leaseback arrangement to reinvest in business growth. Other notable transactions include Hindalco Industries’ sale of a 24.5-acre land parcel in Thane’s Kalwa locality to Birla Estates for over ?5.37 billion and Bombay Dyeing’s 22-acre Worli land parcel sale to Sumitomo Corporation for over ?50 billion. This surge in corporate real estate monetisation has brought high-value properties into the market, attracting institutional investors, developers, and real estate investment trusts (REITs), thereby further invigorating the sector.

Next Story
Infrastructure Urban

Panasonic Showcases Connected Display Solutions

Panasonic Life Solutions India showcased its integrated display, projection, broadcast and communication technologies at Panasonic Tech Summit 2026 in New Delhi. Hosted through its System Solutions Division, the two-day event highlighted connected technology solutions for education, healthcare, retail, transportation, corporate offices and entertainment.The summit, themed ‘Turning Technology into Value’, featured experience-led zones covering QSR, retail, transit, corporate offices, healthcare, education, security, projection, home theatre and professional displays. Panasonic also introduc..

Next Story
Infrastructure Transport

Kapsch to Deliver India’s First C-ITS Project

"Kapsch TrafficCom will deliver India’s first Cooperative Intelligent Transport Systems project on a key expressway near New Delhi. The project will be implemented with Superwave Communication And Infrasolution Limited to demonstrate how connected mobility can improve road safety and traffic efficiency.The pilot will use real-time connectivity and AI-enabled situational awareness to support road users, especially in high-risk areas such as temporary work zones. Drivers will receive alerts on roadworks, maintenance vehicles, hazardous locations, traffic queues and temporary virtual signage di..

Next Story
Infrastructure Urban

Eurobond Net Profit Rises 44 Per Cent

Euro Panel Products, the parent company of Eurobond, reported a 44.13 per cent year-on-year rise in net profit for FY25–26. The company’s revenue from operations grew 18.91 per cent to Rs 503.20 crore, compared to Rs 423.18 crore in the previous financial year.The company’s full-year EBITDA stood at Rs 56.67 crore, marking a 31.82 per cent increase. Profit after tax rose to Rs 26.56 crore, while net worth increased 20.15 per cent to Rs 160.07 crore. Earnings per share for the year stood at Rs 10.84.Divyam Rajesh Shah, Whole Time Director and CFO, Euro Panel Products, said the company’s..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

-->