Its international foray will include a 200,000 sq ft affordable housing project in eastern London in association with a local partner.
Real estate firm XRBIA Developers, which has so far built 15 million sq ft affordable housing units in Pune and Mumbai markets, is now planning to set foot overseas. Its international foray will include a 200,000 sq ft affordable housing project in eastern London in association with a local partner.
“We are in the process of signing our first overseas affordable housing project in London. The documentation will be ready in the next two to three months and the project will be launched in about a year-and-a-half,” said Rahul Nahar, founder of the company.
“We felt there was huge demand for affordable housing in London but no new supply. Lucrative margins and ease of doing business were other reasons for foraying into the London market. It will take at least one-and-a-half years to start construction,” he said.
"The project will be executed through the joint venture model with a local developer who owns the land parcel. We will be handling the construction part. Depending on the success of the first project we are open to doing similar projects in other parts of London and even explore the Dubai and African markets,” he said.
The units to be launched in London will typically be of size 700 sq ft and cost around Rs 3 crore and micro homes of size 200 sq ft that cost around Rs 80 lakh, he said, adding final unit sizes and prices will be decided at the time of planning the project.
The project will be financed through internal accruals.
Back home, the company plans to move beyond Pune and Mumbai and launch projects in Bengaluru, Delhi-NCR and Kolkata. These projects are keeping with its vision of developing ‘100 future-ready cities by 2030’.
“We are planning to launch 6 to 12 projects outside of Pune and Mumbai. We have already identified land and are in the process of signing the agreement with our joint venture partners in east Bengaluru, Noida and New Town area. The size of the project will be around 1 million sq ft per project for which the revenue target is approximately Rs 400 crore to Rs 500 crore,” said Nahar.
Other cities that the company is planning to launch projects include Chennai and Hyderabad.
These projects will be financed through company’s internal accruals. “We take a construction finance loan but not private equity funding as cheaper finance is available from public sector banks,” he said.
The company has so far completed 18 projects with 40,000 houses across Maharashtra and achieved the target of selling 2,000 units every month in the beginning of the year.Vandana.firstname.lastname@example.org