Sundaram-Clayton Ltd, which is a part of the TVS group of companies, has signed an agreement to divest a plot of 16.381 acres of land situated in Chennai to Canopy Living LLP, which is a joint venture between Prestige Estates Projects Ltd and Arihant Foundations & Housing Ltd. The deal has been worth approximately ₹560 crores. The main purpose of the deal is to realize value through the sale of non-core properties.
According to a regulatory filed by the company, it has entered into an agreement to sell (ATS) on January , for a land situated in Korattur village, Ambattur taluk, which is an established micro-market in north-west Chennai for residential and industrial sectors. The agreement is slated to be fulfilled on February 11, 2026, after satisfying conditions precedent to it.
The company has received the advance payment of ₹25 crore; the balance amount of ₹535.67 crore has been agreed to be paid at the time of execution of the final sale deed, explained Sundaram-Clayton. Sundaram-Clayton has clarified that "Canopy Living LLP is not owned by its promoter or promoter group; hence, the proposed transaction is not considered as related party transaction.
According to sources, the plot is expected to be developed into a massive housing development. It is reported that the area along the Korattur-Ambattur corridor has seen renewed interest in development in recent years due to advancements in infrastructure, easy accessibility to major job centers, and relatively cheaper land costs compared to south Chennai. CBRE, have advised on this transaction.
Prestige Group has been steadily expanding its residential footprint in Chennai, where it has multiple completed and under-development projects across western and southern suburbs. Arihant Foundations, a Chennai-based developer, has a long-standing presence in the city’s mid-income and premium housing segments. Their joint venture vehicle, Canopy Living LLP, has been actively scouting for large contiguous land parcels suitable for high-density residential development.
Interestingly for Sundaram-Clayton, the sale of land is taking place amidst an overall trend of manufacturing companies realizing value from excess/non-core land assets. Several manufacturing groups have unlocked value from their historic land assets to enhance their balance sheets or to invest in their key businesses.
The company pointed out in the disclosure that, in view of the nature of the deal involving the sale of an asset, the information regarding the turnover, revenue effect, or the net worth effect is not applicable to the deal. The company further clarified that the deal does not form a scheme of arrangement, does not constitute a slump sale, and is a mere divestment of assets.
According to real estate consultants following the Chennai market, large land sales have seen an increase in the past year with the focus now being on scaled-up projects that will allow them to reduce construction and funding costs. Scaled-up developers and joint ventures are the ones actively participating in areas like Ambattur, Avadi, Porur, and the OMR region where the demand is strong from end users.
Ambattur, in general, has transformed from being a purely industrial area to a hybrid residential area, thanks to its connectivity with the Chennai Metro, improvement in road infrastructure, and its proximity to job nodes in North and West Chennai. This micro-market is an attractive location for real estate developers to undertake massive residential projects targeting mid-income and upper-mid-income groups.
Industry insiders pointed out that the Sundaram-Clayton land sale is one of the bigger outright land sales in Chennai in the past several months, and it demonstrates that developers continue to seek well-located land even as residential land prices have hardened in large Indian cities.
The deal also marks increased confidence of the developers in the Chennai residential market, which has been registering steady absorption and price escalation due to sustained end-user demand and the absence of speculation.
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