Listed real estate developer Arihant Superstructures Limited plans to make its debut in the hospitality business by creating annuity income from businesses including a hotel, a gymkhana and a club.
The developer is planning to build 30 lakh sq ft of real estate near Mumbai Trans Harbour Link (MTHL) and the upcoming Navi Mumbai International Airport with a projected revenue of Rs 3,000 crore, Ashok Chhajer, chairman and managing director of Arihant Superstructures, told Moneycontrol.
Hospitality foray
According to the company, the first venture for its hospitality foray will be part of its project named World Villas and Club 10 gymkhana in the Panvel area of Navi Mumbai. The plan is to have 221-key hotel on 9 acres, and another sports club and a gymkhana on 10.5 acres.
The gymkhana would have a revenue stream of membership fees with additional revenues from the sale of food, drinks, entertainment and sports venue sales, while the hotel would be positioned as a wedding destination events and a venue for corporate events, apart from offering rooms on rent. The company expects that the above would require an investment of Rs 250 crores.
The company currently active in affordable and mid-segment to luxury housing in areas like Navi Mumbai, Panvel, Karjat, etc.
"Out of 30 lakh sq ft, 10 lakh sq ft construction will be for annuity business including the hospitality business of the hotel, gymkhana and club. We plan to have 15 to 20 percent of revenue from annuity business in the coming three to five years. Other than the hospitality annuity business, we remain committed to construction of residential projects along with retail and commercial," Chhajer said.
The company is also in the process of developing a plotted residential villa project in Navi Mumbai spread across more than 100 acres.
Price appreciation due to MTHL?
According to Chhajer, the company expects the Navi Mumbai residential real estate market to grow steadily. "On account of MTHL, we have increased prices 5 percent. Even when the Navi Mumbai airport is operational, our price rise will always be in the minimal range as we do not want to harm homebuyers sentiment," said Chhajer.
Also read: Arihant Superstructures forays into plotted development, to invest Rs 700 crore for 500 luxury villas
The company has 10,000 flats within 30.minutes’ drive from the heart of the city but close to the upcoming airport known as Navi Mumbai International Airport. According to the company, it is focused on catering to homebuyers with a budget in the range of Rs 22 lakh to Rs 5 crore and it has products spanning this range.
Mumbai plans
According to the company, while it has no immediate plans to enter the real estate market in Mumbai proper, nothing is ruled out.
Also read: Why are real estate developers launching plotted developments?
"As Mumbai is witnessing an infrastructure upgrade with several metro projects along with MTHL, Coastal Road (the under-construction north-south artery) and the (Bandra-Worli) Sea Link, we are open to business opportunities in the Mumbai real estate market. Currently, we do not have any proposal or opportunity being considered, but we are always open to opportunities," Chhajer added.
The company has till now delivered more than 12,000 homes across some 60 projects and currently has a pipeline of over 2,000 units under construction, totalling over 18 lakh sq ft.
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