Expect Dream Series proj to be sold out in 5 yrs: Sobha Dev

Bangalore-based realty company Sobha Developers has launched its new project Sobha Dream Series. The realization for this project is Rs 5,500 per square feet, lower than the usual Rs 6,000 per sq ft, says managing director JC Sharma.Speaking to CNBC-TV18, Sharma says the first phase of the project is already underway and is expected to finish within seven years. “We also expect it to sell out in the next five years,” he adds. Below is the edited transcript of JC Sharma's interview with Reema Tendulkar and Sumaira Abidi on CNBC-TV18.Sumaira: What are the kinds of revenues that you are hoping to target from here? What are the realisations in this project, etc.?A: We believe once this project is fully sold out, it should give us revenue in excess of Rs 4,200 crore at current prices. However, right now we are only doing first phase which is about 2,200 units and hopefully the project should get completed in seven years time and should be sold out in next five years.Reema: In FY16, what percentage of this revenue can accrue to Sobha Developers from this project as well as in FY17 what visibility do you have or what are your expectations?A: We will be sharing those things with the guidance in next month, but we are confident that with the launch of this product, our volumes will definitely improve in this financial year. That will also get reflected in improving our revenues as well in the current financial year.Sumaira: What could your volumes go up to?A: I will need my board’s permission to convey.Reema: Would you say the pricing for this new project, Sobha Dream Series, has gone up on a year-on-year (Y-o-Y) basis for companies in Bangalore?A: Not at all. I was realising more than Rs 6,000 per sq ft for my normal product. Here, we should start selling this at below Rs 5,000 and with VAT and all services; it should be in the range of Rs 5,500 or so. There is roughly about 15 percent or so reduction in our price realisation without compromising on the margins.