Birla Estates has finalised five projects in the last few months across Bengaluru, Mumbai, Pune and Delhi, with a revenue potential of almost Rs 9,000 crore, KT Jithendran, managing director and CEO of Birla Estates Pvt Ltd, told Moneycontrol.
“These projects are located at RR Nagar and Sarjapur in Bengaluru; Wellesley Road in Pune; Walkeshwar in Mumbai and Mathura Road in Delhi,” he said.
The company plans to launch more projects and new phases across India. These will include ultra-luxury projects in Mumbai, luxury projects in Bengaluru, and in the mid-segment in Pune and Delhi-NCR this financial year, with a revenue potential of about Rs 5,900 crore, Jithendran said.
The Rs 5,900 crore includes launches of some new projects that have been signed, and new phases of existing projects.
“One of them is in the very prime South Mumbai location, which is Walkeshwar. We have also managed to enter a prime location in Pune. Overall, we have added a portfolio with a revenue potential of almost Rs 5,900 crore. A couple of them may happen in quarter three, and the rest between quarters three and four,” he said.
The company finalised bookings worth Rs 2,183 crore last year. It is on the lookout for more land parcels as growth continues, Jithendran told Moneycontrol.
More launches planned
The company is planning to launch at least five projects this year. “We are planning to launch two of our new projects in Bengaluru. We are also planning to launch the prime property that we purchased in Walkeshwar by the last quarter of this financial year. We're looking at launching a new phase in Birla Niyaara (in Worli, South Mumbai). And, we are looking to launch the new phase in Birla Navya, Gurugram. So, launches planned this year would be across new projects and the new phases of existing projects,” he said.
The company’s focus will be across the luxury to mid-premium segment across markets.
The Bengaluru project will be located on a 52-acre plot, with a few villas and town houses thrown in.
As for investments for these projects, Jithendran said that land has been fully paid for.
The price range for buyers will be from Rs 50 lakh to more than Rs 40 crore, he added.
Elaborating on plans for the Birla Niyaara project, Jithendran said around 9 lakh sq ft has been launched as part of the first phase. The company intends to launch about 8.35 lakh sq ft by the end of this year. The revenue potential for the new phase of Birla Niyaara will be close to Rs 4,000 crore, he said.
“There is another million square feet of commercial space that is expected to come up at some point of time, maybe a couple of years down the line,” he said.
As for the Walkeshwar project: The plot size is small and the potential is close to about Rs 600 crore, said Jithendran.
Handovers
The company is planning to hand over almost 1,500 apartments, spread over three projects — one in Bengaluru, one in Kalyan Birla Vanya in MMR, and one phase in the NCR this year.
As for redevelopment, Jithendran said that while the company does not have a portfolio in the segment, “we should be looking at it because that’s how Mumbai will be growing. The future of Mumbai will be largely through redevelopment, especially the island city. However, all these are greenfield projects.”
Strategy for stalled projects
He said that the company may consider a fresh phase of a stalled project, provided the financials are healthy.
“Not projects that are half built or even partly sold. We don't want to get into those. But if there is a new phase in that project, which we can independently develop with our own independent RERA and complete the construction, we are happy to take over that,” he said.
“If the financials are good, we are happy and willing to take over. That's an essential part of the strategy,” he added.
The company is in talks with a few developers in Bengaluru, Mumbai, NCR and Pune, he said.
Plans for Delhi-NCR
The company is planning to launch phase four of project Birla Navya, the first phase of which was launched in 2021.
“We have sold inventory worth close to Rs 1,350 crore across the three phases,” he said, adding that the fourth phase may be launched in the third quarter.
The company is also “aggressively” looking to enter Noida. “We are in discussions with a few landowners, both in Gurgaon and Noida, and in Delhi as well,” he said, adding that the company may consider launching a luxury project in the region.
Commercial portfolio
The company 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,” he said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
