Birla Estates has a project pipeline with a gross development value of Rs 45,000 crore: CEO

Mumbai property news: "We have a very strong pipeline of about Rs 45,000 crore of GDV. We are looking at adding another Rs 10,000 crore this year, maybe another Rs 20,000 crore next year. And we have enough and more gunpowder for that," , K T Jithendran, MD & CEO, Birla Estates said.

Birla Estates Pvt Ltd, the real estate arm of the Aditya Birla Group housed under Century Textiles and Industries Ltd, has a project pipeline worth Rs 45,000 crore in gross development value (GDV), a top company executive said.

In the upcoming quarter, the company plans to launch the second phase of its flagship project named Birla Niyaara in the Worli area of Mumbai, K T Jithendran, MD & CEO, Birla Estates, said in the company’s latest earnings call. The company said it has added projects worth Rs 16,000 crore this fiscal.

"We have a very strong pipeline of about Rs 45,000 crore of GDV. We are looking at adding another Rs 10,000 crore this year, maybe another Rs 20,000 crore next year. And we have enough and more gunpowder for that. So, we are confident that we are on the right track," Jithendran said during the conference call.

The company aims to reach a gross pre-booking value of about Rs 3,000 crore through its three projects in Mumbai and Bengaluru. "We are expecting to launch the new project in Bengaluru, which is RR Nagar, which we acquired last year. We are also planning to launch Walkeshwar in Q4 FY24. And we are also planning a new phase of Birla Niyaara, Worli, in the coming quarter. All of these together with our current sustenance sales should help us achieve a target of around Rs 3,000 crore," Jithendran said.

The Worli launch will be the second phase launch for Birla Niyaara. In the first phase, the company launched 414 flats, for which it has closed over 85 percent of the sales. In the second phase, the company plans to launch another 8.5 lakh square feet to 9 lakh sqft of saleable area.

The company in April 2023 announced the acquisition of a land parcel for a luxury residential project in the Walkeshwar area of Malabar Hill in South Mumbai. The super-luxury residences at Walkeshwar hold a revenue potential of over Rs 600 crore, the company had said in April.

The company in September 2022 announced the acquisition of a 10-acre land parcel at RR Nagar in South Bengaluru. The project has a development potential of 1 million sq ft with a revenue potential of Rs 900 crore, the company had said.

Also read: Birla Estates has finalised 5 housing projects with revenue potential of Rs 9,000 crore: MD and CEO

Regarding launches on the company's land in Pune and Prabhadevi area of Mumbai, Birla Estates said it is not looking for an immediate launch in the next two, three years on these projects.

"We are concentrating on a lot of the other projects also. So, we have our hands full. Whenever we think it's the right time and opportunity, we will figure out these launches. We have enough and more at Worli to focus there at this point in time. And once we kind of dispense this reasonable amount of this inventory, then we can think about that (Prabhadevi). We do not want to cannibalise these markets for very similar micro markets," Jithendran said during the call.

Its luxury project, Birla Niyaara, which is selling for around Rs 80,000 per sq ft on carpet area, had become the highest selling project in a year in the Mumbai Metropolitan Region with a booking value of Rs 1,915 crore in CY2022, according to the company.

Birla Estates also has two commercial projects in Mumbai, at Worli and Prabhadevi. “Both of them are completely leased out and we’re getting an average rental of close to about Rs 130 crore. So, we will be looking at the commercial portfolio a little opportunistically,” the company had told Moneycontrol in July 2023.

Also read: Birla Estates announces 14-acre project in Worli, Rs 1,500 crore investment expected in first phase

In Q2 FY24, Birla Estates clinched bookings worth Rs 708 crore followed by collections of Rs 251 crore from all projects during the quarter. During Q2 FY24, the company acquired two projects with an estimated GDV of approximately Rs 10,300 crore. It signed a binding MoU for the purchase of 30 acre of land in Thane, which has a potential of more than Rs 7,600 crore in GDV, and acquired around 6.8 acre of land in Mathura Road, New Delhi, with a potential of more than Rs 2,700 crore.