Listed real-estate developer Arihant Superstructures Ltd is foraying into the plotted development segment and plans to invest Rs 700 crore for constructing a township in Chowk near Panvel -- a two-hour drive from Mumbai.
Plotted developments are subdivisions of land into plots or lots for sale or lease to homebuilders for new housing developments. The plots typically have the same dimensions, and there is no land between them, but they're usually divided by a network of roads.
Arihant has acquired nearly 76 acres of land for the project, named World Villa, and plans to construct 500 luxury villas and a 200-room resort, Ashok Chhajer, Chairman and Managing Director of Arihant Superstructure, told Moneycontrol on June 20.
According to the company, out of the 76 acres, around 55 will be sold to buyers for constructing luxury villas, and the remaining will be used for the construction of gymkhanas, clubs and resorts to create an ecosystem.
The company, which is mainly focused on the affordable and mid-segment housing segments at Navi Mumbai in Maharashtra and Jodhpur in Rajasthan, says there is a lot of opportunity in the plotted development space, and plans to create a portfolio gradually.
"The total land acquisition and approval costs, along with the investment for plotted development, is Rs 700 crore, and we are expecting a sales value of Rs 1,000 crore for 500 villas," Chhajer said.
Launch in Diwali
Arihant plans to launch the plotted development township during Diwali in 2023, and plans to sell a minimum of 2,000-3,000 sq ft of land parcels in each transaction. The company maintains that it will construct the ecosystem in the township by constructing gymkhanas, clubs with a hotel and resort, spread across 20 acres. Further, it will be open for constructing villas on behalf of land buyers for which the buyers will have to bear the construction cost, added Chhajer.
Bookings by invitation only
"Bookings in the project will be only by invitation, and the company will be adopting a pull model for selling rather than the push model. This means we do not go to the buyers, but we pull buyers towards us," added Chhajer.
Also read: Why are real estate developers launching plotted developments?
Pricing not decided yet
Arihant has not decided on the pricing yet and will announce it during the launch. However, competitors are offering similar land parcels at a rate ranging from Rs 6,000 to Rs 8,500 per sq ft.
"The location is very strategic, considering we have ND's Film World opposite to our land parcel, and it is close to the Hiranandani Fortune City, Panvel. The project is 30 minutes away from the upcoming Navi Mumbai International Airport and several Bollywood celebrities have their farmhouses in the area," he said.
Company plans in 2023-24
According to the company, along with a plotted development project around Diwali 2023, it will remain focused on the construction of residential homes in the Mumbai Metropolitan Region (MMR) in the affordable, mid-income and premium segments.
Also read: Why Bengaluru’s villas are all the rage among millennial buyers
The company has 96 percent of portfolio in the affordable and mid-income segments, with prices ranging from Rs 20 lakh to Rs 3 crore.
The company plans to launch projects in Taloja, Khopoli, Panvel, Kalyan, Badlapur, Karjat, Shilphata, Titwala, and one plotted development project in Karjat in the next few months.
"We expect to raise the investment of Rs 200 crore by issuing equity shares and are expecting six project launches in 2023-24. Also, we plan to construct 10 lakh sq ft in MMR, excluding the plotted development project and around 2 lakh sq ft in Jodhpur," added Chhajer.
In 2023-24, the company expects to complete four out of 12 ongoing projects. Its ongoing projects have an unsold inventory of 20 lakh sq ft.
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