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.

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

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
Real Estate

Pecan Realty Completes Rs 1.5 Billion Transactions

Pecan Realty has recently completed four institutional transactions worth over Rs 1.5 billion over the past two years, strengthening its position as an execution-led real estate platform. The deals include resolution-led acquisitions, structured finance transactions and capital partnerships across its development portfolio.The transactions covered acquisitions through the National Company Law Tribunal process and helped provide repayment or exits to both private and public sector lenders. The company said the deals demonstrate its ability to resolve complex project situations, work with instit..

Next Story
Real Estate

SNN Estates Expands North Bengaluru Housing Project

SNN Estates has announced an expansion of its SNN Estates Felicity residential project in North Bengaluru following strong buyer demand, with 75 per cent of the first-phase inventory sold within three days of launch.The developer will add 76 apartments in the new phase, taking the project's estimated revenue potential to around Rs 1,000 crore upon completion of Phase 2.Spread across 6.5 acres in Rachenahalli, near Manyata Tech Park, the project comprises 604 apartments in 1.5, 2, 2.5, 3 and 4 BHK configurations. The development includes a 50,000-sq-ft clubhouse with amenities such as sports co..

Next Story
Infrastructure Urban

SCG Drives ASEAN Industrial Transformation Strategy

SCG is strengthening its focus on ASEAN as a key growth region by advancing industrial transformation, enhancing competitiveness and building resilient regional value chains. Thammasak Sethaudom, President and Chief Executive Officer, SCG, highlighted the need for industries to continuously develop capabilities, strengthen resilience and deepen regional cooperation to achieve sustainable long-term growth.SCG views ASEAN as an important growth engine alongside China, supported by favourable demographics, trade connectivity and investment flows. With ASEAN’s GDP projected to grow by around 4.7..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement