Sundaram-Clayton to Monetise Chennai Land with ₹560 Crore Deal with Prestige–Arihant JV

Sundaram-Clayton has entered into an agreement to sell a 16.38-acre land parcel in Chennai to a joint venture between Prestige Group and Arihant Foundations & Housing for an estimated consideration of ₹560 crore, according to people familiar with the development. The transaction is seen as a major asset monetisation move by the auto components manufacturer and a strategic land acquisition by the developers.

The land parcel, located in Korattur, is expected to be developed into a large-scale residential project, tapping into sustained housing demand in Chennai’s established micro-markets. Real estate experts note that large, contiguous land parcels within city limits are increasingly scarce, making such acquisitions particularly attractive for developers with long-term project pipelines.

For Sundaram-Clayton, the deal aligns with its broader strategy of unlocking value from non-core assets and strengthening its balance sheet. Asset monetisation has emerged as a key lever for several manufacturing companies, allowing them to redeploy capital into core operations while reducing debt and improving financial flexibility.

On the other hand, the acquisition strengthens Prestige Group’s presence in Chennai, a market that has seen steady residential absorption driven by IT employment, infrastructure upgrades, and end-user demand. The partnership with Arihant Foundations, a well-known local developer, is expected to help in navigating regional market dynamics and execution efficiencies.

Industry observers point out that Chennai’s residential market has remained relatively resilient compared to other metros, supported by stable pricing, strong mid-income demand, and improved connectivity through metro rail expansion and road infrastructure projects. Large developers are increasingly focusing on integrated residential communities that offer amenities, green spaces, and better lifestyle features.

The transaction also underscores the growing role of joint ventures in Indian real estate, where national developers collaborate with local players to mitigate risk, optimise capital deployment, and accelerate project delivery. With regulatory clarity and improving buyer sentiment, such partnerships are likely to become more common.

Once completed, the Korattur project is expected to add meaningful residential supply to the city while reinforcing Chennai’s position as a stable and long-term real estate investment destination for both developers and homebuyers.