The company plans to launch three projects in Delhi-NCR this fiscal, which will mark its foray into the market
Diversified firm Shapoorji Pallonji's real estate arm has planned to launch nearly 35 million sq ft of projects across its existing markets this fiscal, a senior company official said.
The company plans to launch three projects in Delhi- NCR this fiscal, which will mark its foray into the market, its Group CEO Venkatesh Gopalakrishnan told PTI here.
"We have nearly 90 million sq ft of development in the pipeline. Out of this, we are launching 35 million sq ft this fiscal and an equal number in the next year and the rest in the third year," he said.
Gopalakrishnan said the projects would be developed across its product portfolio and in cities like Mumbai, Delhi- NCR, Bengaluru, Kolkata, Hyderabad, and Pune.
"We have been looking at the NCR market since 6-7 years, but were able to buy land only in the last one year as now we are seeing the prices softening. We saw this as an opportunity to build a product and sell it at a reasonable and affordable price," he said.
In the NCR market, the company is developing a mid-income project under the Joyville brand, which will come up on nearly 1.2 million sq ft in the northern Peripheral Road in Gurgaon.
"On the same road, we are planning to launch another project in the range of Rs 90 lakh and above. We have (a piece of) land in Noida and we will be launching a project here in the next couple of months."
"In total, we have over 6 million sq ft of development to be launched this year. We will add few more projects in this market going forward," Gopalakrishnan said.
Speaking about the company's product mix in the residential segment, he said, it has nearly 40 percent of the residential project portfolio under the joint venture model, while 20 percent under the development management (DM) and 10 percent in joint development.
"We see immense opportunity for the DM model in Mumbai and Pune because for us location is very important in such developments because we are putting our brand team, marketing and construction mind behind it. We have to be very careful with DM model," he added.
The 90 million sq ft pipeline includes the phase-wise launch of some of its existing projects under the Joyville brand as well as some luxury and mid income projects being developed in Mumbai and Pune and some in Kolkata.
The company currently has three projects under the Joyville brand with each in Mumbai, Pune and Kolkata and plans to add a few more going forward.
"Nearly 20 percent, or 18 million sq ft of the total 90 million sq ft development, will be under the DM model which will be largely in Pune and Mumbai. Maximum development will happen in these two markets - nearly 60-65 million sq ft."Bengaluru is another market where we want to expand significantly," he said, adding over a dozen of projects will be launched in three years.