Puravankara to Launch 18 Residential Projects in Western, Southern Markets
Bengaluru-based realtor Puravankara Group plans to launch 18 residential projects, spread across 16.28 million sq ft, in Bengaluru, Pune, Mumbai, Kochi, Coimbatore and Chennai this fiscal. The sales value of all these projects, over three-five years, is about Rs 8,500 crore. “We are looking at adding 6.35 million sq ft under the Puravankara brand, 6.75 mn sq ft under Provident and 3.18 million sq ft under Purva Land. From a launch point of view, we are talking about 18 projects to be able to create scale in the market. We have to create the bandwidth to deliver. They will start rolling out from mid-July onwards,” Abhishek Kapoor, CEO, Puravankara, said. Of the 18 projects, four are plotted developments and 14 residential under the Puravankara and Provident brands, he said. 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's no land between them, but they're usually divided by a network of roads The company will focus on the current markets but its goal is to “go deeper in Bengaluru, Pune, Chennai, Mumbai and Hyderabad”, he said. Kapoor emphasized that despite the three waves of COVID-19, the company now has the momentum to do more volumes than what “we have done in the past. This is to do with the monetization of our current land parcels and investments we have already made, as our land parcels have been paid for. Most of the launches are planned between Q2, Q3 and Q 4 this fiscal,” he said. The company is looking at delivering close to 3,000 units this year. These would be in Purva Land-Tivoli Hills (Bengaluru); Provident Park Square (Bengaluru); Purva Silversands (Pune); Provident Kenworth (Hyderabad); Provident Woodfield’s (Bengaluru); Purva Promenade (Bengaluru); Purva Land Southbay (Chennai). It does not have plans to enter the north Indian market. “The focus would be on the western and southern parts of the country,” he said. The company has, so far, invested close to about Rs 400 crore in the Mumbai residential market and “our emphasis will be on scaling our operations in Pune and Mumbai”. The company is also considering setting up a capital-raising platform, including its Alternate Investment Fund (AIF) which has already been launched. “We are currently discussing raising capital for our commercial business. We are looking at multiple platforms. We are planning to take around 2.7 mn sq ft of commercial development to the market this year, scaling up our deliveries and building on a large portfolio,” he said. The real-estate company is also evaluating opportunities in the stuck projects space. In May this year, the company reported a consolidated net loss of Rs 20.06 crore for the quarter ended March on a lower income. The company had posted a net profit of Rs 9.06 crore in the year-ago period. Total income also fell to Rs 320.12 crore in the period under review from Rs 340.44 crore in the corresponding period of the previous year. Kapoor said the company posted net loss in the fourth quarter of last fiscal due to lower deliveries and owing to the fact that the cost of launches incurred during the quarter needs to be factored in the same quarter even though the revenue and consequent profit can be realized only on delivery of the unit in future.
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