Arvind SmartSpaces plans foray into Mumbai Metropolitan Region

"The company is open to joint ventures (JV) and Joint Development (JD) and old society redevelopment," said Kamal Singal, Kamal Singal, Managing Director and CEO, Arvind SmartSpaces. (In picture: Kamal Singal)

Ahmedabad-based listed real estate developer, Arvind SmartSpaces, is aiming to make its foray into the Mumbai Metropolitan Region (MMR) market by the end of the ongoing fiscal.

The company plans to sign one or two projects including second homes by the end of March 2024. The minimum topline sales will be around Rs 400-500 crore each, Kamal Singal, Managing Director and CEO, Arvind SmartSpaces, told Moneycontrol.

"We are targeting signing one or two projects in MMR by the end of ongoing ‘23-‘24 fiscal. One project will be horizontal in nature and one will be vertical. Horizontal will be second homes, which turn into first homes in the long term. We are exploring locations like Karjat, Khopoli, Panvel, Bhiwandi etc. The periphery of Mumbai. Vertical will be somewhere in suburban Mumbai (Goregaon to Dahisar,  Mulund, Thane) where the per sqft residential market rate is Rs 15,000 to Rs 30,000," said Singal.

Redevelopment of old buildings:

For vertical development, the company is open to joint ventures (JV) and Joint Development (JD) and old society redevelopment. For horizontal development, the company is looking for an average size of about 1500 sq ft carpet each in a big layout.

Related stories

Mehul R Thakkar

Special Correspondent|Moneycontrol

• 
  New players have entered Mumbai real estate market and we welcome their presence: Abhishek Lodha
• 
  Mumbai real estate market records 9% rise in property registrations this month
• 
  MahaRERA tells developers to declare parking space details to homebuyers

"We are aiming for a minimum topline sales of Rs 400 crore- 500 crore each and aims earnings before interest, taxes, depreciation, and amortization ( EBITDA) of 25 percent and profit after tax (PAT) of 12 percent. Going further, we aim to have 40 percent of the business from Ahmedabad, 40 percent from Bengaluru and 20 percent from MMR," Singal added.

Asked if the company is looking at the Delhi region, Singal said, "We do not have any plans for entering the National Capital Region (NCR) real estate market or even Hyderabad for now. We keep monitoring Hyderabad, but nothing that we are closing in the short or medium term. Further, in Maharashtra, MMR is the focus, with an eye on Pune. But nothing above that in Maharashtra that we are entering or even monitoring".

Development in Ahmedabad

The company had on August 1 announced that it has signed two horizontal projects in Ahmedabad, with a total estimated area of around 704 acres with a topline potential of Rs 2,300 crore. Out of this, it plans to launch around 200 acres of a horizontal project shortly.

Also read: Arvind SmartSpaces inks two projects spread across 704 acres in Ahmedabad

"It is a joint development project and we are planning to launch it very soon. In Gujarat, Ahmedabad and Gandhinagar will be our focus, and in Bengaluru we are consolidating. Further, we will monitor how the market shapes up," said Singal.

Q1FY24 results

The company on August 2 had reported an 11 percent year-on-year increase in profit after tax (PAT) at Rs 8 crore for the first quarter of the financial year 2023-24.

Revenue from operations grew 11 percent to Rs 67 crore from Rs 60 crore in the year-ago period. Total collections were up 54 percent at Rs 203 crore from the year-ago period, the company had said in an exchange filing.

The stock opened at Rs 354.15 on September 26 at the National Stock Exchange (NSE).