Shares of Bengaluru-based real estate developer Puravankara were sharply higher on July 7 after the group announced plans of redevelop eight residential societies in Mumbai's Chembur suburb with an estimated gross development value (GDV) of Rs 2,100 crore.
The announcement further ramps up Puravankara's redevelopment pipeline in the city, with a significant chunk of GDV anticipated to come from redeveloping residential buildings. The realtor has been selected as a preferred developer for the redevelopment of eight residential societies in Chembur.
"Now with 11 projects across Mumbai and Pune, spanning approximately 14 million square feet, including 3.6 million square feet in redevelopment, we are committed to strengthening our footprint in the western region. The region is expected to contribute a GDV of approximately Rs 18,000 crore, of which approximately Rs 7,700 crore will come from redevelopment alone," said Ashish Puravankara, Managing Director of Puravankara.
Puravankara has been securing major redevelopment projects in sought-after Mumbai neighbourhoods like Breach Candy, Pali Hill, Lokhandwala, with Chembur added to the list. The company said it received strong response for its existing project in Chembur - Purva Clermont - which has bagged their efforts to increase expansion in this micro-market.
While Bengaluru continues to lead the sales for Puravankara with 56% share, Chennai, Mumbai and Pune contribute around 15-17% each, with Mumbai and Pune seeing a significant rise in contribution to overall sales, driven by a rising presence in the western region. Recent acquisitions and redevelopment projects in Mumbai pegged the GDV at Rs 9,500 crore before the latest announcement. For Purvankara, its non-Bengaluru projects now make up 54% of ongoing developments and 52% of its proposed pipeline, with Mumbai and Pune together accounting for about 21% of the planned projects.
In Mumbai, the management has adopted two key models of development, one is through redevelopment where it is looking to secure marquee assets across regions in the city, and the other strategy is to acquire land parcels or through joint development agreements (JDAs).
The builder has projects in cities like Bengaluru, Hyderabad, Chennai, Kolkata, Mumbai, Pune and Goa.
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