Puravankara & its First Category-II AIF Acquire 100 Acres Land in Chennai
Puravankara and Purva Real Estate Fund, the Group’s first category-II AIF have acquired more than 100 acres of land for plotted development in a deal valued around Rs 200 crore in Chennai. The proposed project at Guduvanchery is expected to have a total revenue potential of over Rs 900 crore. “Puravankara and the AIF Fund partly acquired the land. The biggest strength of plotted projects is clarity on the title and government-approved developments,” said Abhishek Kapoor, CEO, of Puravankara. Guduvanchery is an upcoming real-estate hub for Chennai. It is located on GST Road and has fast connectivity to the city’s tech hub via the Vandalur- Kelambakkam road that connects to Old Mahabalipuram Road (OMR). The current area under development for plotted projects is 2.2 mn sq ft and upcoming development of around six mn sq ft entails an investment of Rs 1,400 crore over the next 3 years. Puravankara plans to launch three more plotted development projects by March. The cash turnaround projects and our ability to sell volumes, realise cash flows, and turn the project around is quicker. We create value in a gated community of plotted developments,” said Kapoor. According to Kapoor, 80-85% of demand is led by end-users looking to build a second or primary home to stay there. “They want to keep a land asset and have that develop over time,” he said. The firm is evaluating a few more opportunities to deploy the funds raised by the Purva Real Estate fund. The fund will invest in a mix of plotted and residential developments under the ‘Purva Land and ‘Provident brands across Bangalore, Pune, Chennai, Hyderabad and Mumbai and its suburbs. The fund will also invest in 6-8 mid-sized projects of Provident Housing with a four-development timeline. The company currently has 12.36 % mn sq ft of projects under construction across the Puravankara and Provident brands. Puravankara and Provident brands. Puravankara has net debt of Rs 1,889 crore as of the first quarter of FY23.
Tags : Puravankara Purva Real Estate Fund plotted development Chennai Abhishek Kapoor CEO Purvankara