Bengaluru-based real estate developer Sattva Group has lined up three projects in Mumbai, in the island city itself and in its suburbs, with a combined gross development value of around Rs 10,000 crore, the group's managing director Bijay Agarwal said in an interaction with Moneycontrol.
Agarwal said that the company is also in "serious discussions" to sign up three to four more projects, although he did not provide more details regarding their location, size or the revenue potential.
About the ones in hand, he said, "We have just signed the projects, and we are now planning them and clearing the sites. One project has been signed up at Sewri, which will be launched in two phases for a total size of 2.3 million square feet. Another project will be in Powai, which will be around 850,000 square feet. And we have also taken another society at a prime location in Prabhadevi, which will be around 300,000 square feet. We remain in talks with around three to four societies."
While the Sewri project may fetch a price of around Rs 35,000 to Rs 40,000 per square foot, the company this figure to go up to around Rs 70,000 per square foot at Prabhadevi. Residential rates in Powai are in line with those in Sewri, with prices at the latter increasing over the past year due to improving connectivity, mainly through the trans-harbour Atal Setu, as well as the Eastern Freeway.
Agarwal said that Sattva is expected to invest around Rs 2,000 crore through equity in the Mumbai projects, with the rest of the expenses to be met through traditional lending deals, as well as internal accruals.
Sattva, while being a family-owned developer, has been taking steps towards becoming a more "professional" organisation, and welcoming external capital, with its joint venture with Blackstone headed for a Rs 4,800-crore public listing next week through Knowledge Realty Trust, a real estate investment trust.
The company's co-living platform, branded Colive, has Bain Capital as an external investor, with Sattva aiming to build on the 12,000 live beds on the platform across Bengaluru, Pune, Chennai and Hyderabad.
While public listings have been the flavour of the real estate sector over the past two years, the company does not have immediate plans of listing its residential business but may take that route for its owned co-working spaces firm Simpliwork.
"We are not immediately planning to go for an IPO (for the residential business) but we can do so down the line, because our residential growth has been three times in the last four years. We launched 11 million square feet last year and this year, we expect to launch around 16 million square feet. Besides that, we have a large office portfolio under Knowledge Realty Trust, and also the co-working space brand Simpliwork, which we can think of doing an IPO of in the next two years," Agarwal said.
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