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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鈥揝trategy, 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鈥攅nhanced 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鈥� sale of a four-acre land parcel in Mumbai鈥檚 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鈥� sale of a 24.5-acre land parcel in Thane鈥檚 Kalwa locality to Birla Estates for over ?5.37 billion and Bombay Dyeing鈥檚 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鈥揝trategy, 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鈥攅nhanced 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鈥� sale of a four-acre land parcel in Mumbai鈥檚 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鈥� sale of a 24.5-acre land parcel in Thane鈥檚 Kalwa locality to Birla Estates for over ?5.37 billion and Bombay Dyeing鈥檚 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.

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