Bengaluru-based listed real estate developer, Puravankara Limited, has forayed into the redevelopment space in Mumbai after securing the residential redevelopment rights for two housing societies in the western suburbs with a potential gross development value (GDV) of Rs 1,500 crore over the project’s life cycle. Construction for the luxury project is expected to begin next fiscal, a top official of the company told Moneycontrol.
The first redevelopment project is located in the heart of Lokhandwala in Andheri West and is spread over three acres. It has a cumulative estimated development potential of 5.8 lakh square feet carpet area, with approximately 3.65 lakh square feet available for sale, said Kapoor.
“As a group we see immense potential in the redevelopment space. This project marks our entry into this segment in Mumbai. We are currently in engagement with multiple societies for redevelopment projects. We are definitely looking at western suburbs, South Mumbai and to some extent central suburbs - markets such as Chembur, Ghatkopar to name a few," said Abhishek Kapoor, Group CEO of Puravankara Limited, adding that the company hopes to conclude a few more transactions in this space in the next 12 months.
Redevelopment projects in Mumbai will contribute to anywhere between 50 to 60 percent of our top line in terms of the company’s presales and eventually in terms of bottom line as well. “Our goal is that we will have at least 50 to 60 percent of our business coming from redevelopment space over the next three-year time frame. Our entire business strategy that caters to this particular need in the Mumbai market revolves around the redevelopment space,” he said.
The company concluded the agreement for its first redevelopment project in Mumbai recently and is expected to submit its plans within the next 60 days. The project launch is likely to take place in the next fiscal. The company is currently constructing two projects in Mumbai - one is on an industrial land in Chembur and the other is under a joint development agreement in Thane.
The company is currently also engaged with land owners for multiple joint development opportunities in Mumbai, MMR and Pune.
The redevelopment project located in the heart of Lokhandwala in Andheri West is expected to be an uber luxury project. “There is enormous demand in the uber luxury space in this part of the city. Since land is scarce, redevelopment is the only way forward. With the city’s infrastructure getting augmented, the skyline has to match global standards. If you want the city to be like New York, or Hong Kong or Singapore, redevelopment is the key to urban rejuvenation,” said Rajat Rastogi, CEO - West and Commercial Assets- Pan India.
On November 14, Puravankara Ltd posted a consolidated net loss of Rs 11.22 crore in the September quarter and clocked an over two-fold jump in its sales bookings to Rs 1,600 crore. The company had posted a net loss of Rs 17.22 crore in the year-ago period. Total income rose to Rs 381.57 crore in the July-September period of this fiscal from Rs 252.85 crore in the corresponding period of the previous year, according to a regulatory filing on Tuesday. The company also plans to launch two new projects in Pune this fiscal year.
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