Bengaluru based Sattva Group is in talks with Blackstone to float a REIT for commercial assets in India soon. Sattva and Blackstone command a joint portfolio spanning 32 million square feet, of which 14 msf is under various stages of planning and development. It plans to invest Rs 12,000-14,000 crore in the next 2-3 years developing commercial office, residential, and hotel projects
Around 40% of the planned investment will be deployed in office projects, 50% in housing development, and 10% in hotel projects across existing cities it operates in, such as Bengaluru, Pune, and Hyderabad. It is also set to enter two new property markets - Chennai and Mumbai. The investment will be financed through a combination of equity, debt and internal accruals like sales.
Sattva and Blackstone have partnered to develop 32 million sq. ft, of which 18 million sq. ft has been completed and the remaining is under development. It aims to almost double its residential sales from Rs 3,500 crore in 2023-24 to Rs 6,000-6,500 crore in FY25. On the commercial office front, it is expecting a 20% growth in annuity income from Rs 2,000 crore in FY24.
The realty player is also mulling an IPO for its co-working venture Simpliwork. Internal discussions are on and there would be greater clarity on the Initial Public Offering (IPO) timeline within 2-3 months.
Simpliwork was founded in 2018 by Kunal Walia and Sattva currently holds a 55% stake in the company. The brand’s presence extends to 9 cities with a footprint of 3.5 million square feet. It is expected to increase to 4 million square feet by the end of this fiscal, Agarwal said.
