BENGALURU: Sundaram-Clayton Ltd has entered into an agreement to sell a 16.381-acre land parcel in Chennai to Canopy Living LLP, a joint venture of Arihant Foundations & Housing Ltd and Prestige Estates Projects Ltd, for approximately Rs 560 crore. This move is part of their strategy to monetize non-core assets and enhance value.
In a regulatory filing on Thursday, the company announced it executed the Agreement to Sell (ATS) on January 8, 2026, for the property located in Korattur village, Ambattur taluk, a well-connected residential and industrial micro-market in northwest Chennai. Completion of the transaction is anticipated by February 11, 2026, pending standard conditions.
In the disclosure to stock exchanges, Sundaram-Clayton stated, “The Company has executed an Agreement to Sell on 8th January 2026 with Canopy Living LLP for the sale of approximately 16.381 acres of land in Korattur Village, Ambattur Taluk, Chennai District, Tamil Nadu.”
They have already received an advance of Rs 25 crore, with the remaining Rs 535.67 crore due upon final sale deed execution. Notably, Canopy Living LLP is not associated with the promoter group of Sundaram-Clayton, meaning this transaction does not qualify as a related-party deal.
Sources indicate that the land is slated for development into a significant residential project. The Korattur area and the broader Ambattur region are attracting increasing developer interest due to enhanced infrastructure, proximity to job hubs, and relatively affordable land prices compared to central Chennai.
Prestige Group is expanding its residential presence in Chennai, having numerous projects in various stages across the western and southern suburbs. Arihant Foundations is a reputable local developer with a stronghold in the mid-income and premium housing sectors in the city. Their joint venture, Canopy Living, is actively seeking large land parcels ideal for sizable residential developments.
For Sundaram-Clayton, a member of the TVS Group, this land sale aligns with a broader trend where manufacturing companies monetize excess or legacy land assets to enhance balance sheets, support capital expenditures in core areas, or return funds to shareholders. The company mentioned that since this transaction involves the sale of an asset, disclosures regarding turnover, revenue, or net worth contributions are not applicable.
Additionally, the filing clarified that this sale is not part of any arrangement scheme and does not involve a slump sale. “An advance of Rs. 25 crores has been received and the balance of Rs. 535.67 crores will be paid upon execution of the sale deed,” the company stated.
CBRE, the deal advisor, declined to comment on the transaction.
Real estate experts noted that substantial land transactions in Chennai have accelerated in the past year, with developers increasingly focusing on large-scale projects to enhance efficiencies amid rising construction costs. Institutional-grade developers and joint ventures are particularly active in areas like OMR, Porur, Avadi, and Ambattur, where demand from end-users remains strong.
The Sundaram-Clayton land sale stands out as one of the larger outright sales reported in the Chennai market recently, showcasing sustained developer interest in well-located sites within the city, even as residential prices continue to rise across major Indian metros.
