+
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

Naidu Seeks Rs 563 Crore For AP Sports Infrastructure

Andhra Pradesh Chief Minister N Chandrababu Naidu has sought Rs 563 crore from the Centre to boost sports infrastructure in the state, including Rs 538 crore for stadium development and Rs 25 crore to host the Khelo India Martial Arts Games 2025. Naidu made the request during a meeting with Union Youth Services and Sports Minister Mansukh Mandaviya in New Delhi on Wednesday.The CM urged early completion of Khelo India infrastructure projects in Tirupati, Rajahmundry, Kakinada, and Narasaraopeta, and called for an international-standard badminton training centre and a national aquatic sports hu..

Next Story
Infrastructure Transport

Tough Bidding Norms Slow NHAI Road Project Awards

Stringent bidding rules imposed by the Ministry of Road Transport & Highways (MoRTH) have led to a slowdown in project awards by the National Highways Authority of India (NHAI), despite a robust Rs 3.5 trillion pipeline. According to an HDFC Securities report, the shift to more cautious developer models now favours firms with strong balance sheets, as tighter qualification norms limit aggressive bidders.The revised norms mandate additional performance security, targeting the exclusion of players that previously submitted low bids—often 25 to 40 per cent below NHAI cost estimates—raisin..

Next Story
Infrastructure Transport

Mumbai Gets Coastal Nod for Next Promenade Phase

As Mumbai prepares to open two major sections of its expansive seafront promenade this week, the city’s civic authority has secured a key coastal clearance to advance further construction. The Maharashtra Coastal Zone Management Authority (MCZMA) has approved the commencement of work on the segment between Haji Ali and Baroda Palace, with tendering expected soon after project cost assessments.The promenade, stretching 7.5 km in length and 20 metres wide, is being designed as a flagship open space for walkers, joggers, and cyclists. Two critical stretches—2.75 km from Tata Garden to Haji Al..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?