Shriram Properties Ltd will monetise over two-third of the 314-acre land acquired from Hindustan Motors Ltd in Uttarpara a decade and a half ago. As the first step towards value unlocking from the asset, the company entered into a memorandum of understanding with a logistic company backed by ESR Group, to sell a 90 acre plot.

The transaction will be subjected to the approvals received from the Bengal government and due diligence by Logos, the ESR backed company.

Logos plans to develop a 2.2 million square foot logistic park on the land. The investment in the project would be $ 100 million, the company’s managing director Trent Iliffe announced in the recently concluded Bengal Global Business Summit.

Shriram had acquired the land from HM for about Rs 285 crore. The company has approval to develop 33 million square foot on the plot. A Shriram official said the company intends to develop about 10 million sq ft themselves while getting third parties, such as Logos, to develop the rest.

Market sources pegged the valuation of the Logos land deal at about Rs 2 crore an acre.

Shriram is now developing about 4.5 million sq ft itself for residential development. It is poised to hand over apartments to more than 500 families by the first half of this year. The developer is also building an access road connecting the property to the National Highway 2. The road will be crucial to the success of the logistic park as well as the residential complex.