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Provident Housing, a subsidiary of Puravankara Group, has entered into the bridge-to-luxury residential segment with its first project in Bengaluru, Karnataka. The project, spread over 15 acres on IVC Road, will have 288 units of about 2,000 sq. ft. each.
The Bengaluru-based company seeks to develop more of such projects depending on the scope and market requirements. The upcoming project is expected to cost about Rs 1.9 crore per unit with a total revenue potential of Rs 600 crore. Further, the firm is planning to maintain its portfolio with a mix of 75 percent mid-income and 25 percent bridge-to-luxury homes. It will also focus on large township projects spread over 30 acres as demand for community living increases.
Besides, the real-estate firm plans to focus on radial development in the city, for which, it is in talks for two large land parcels in Whitefield and Electronic City to develop township projects. Also, it is in discussion with HDFC Capital Advisors to raise more than Rs 1,000 crore. The proposed fund would be utilised to build mid-income homes in the southern markets of Bengaluru, Chennai and Hyderabad as well as enter new markets. The investment is anticipated to have a gross development value of nearly Rs 3,500 crore.
At present, Provident Housing has 12.5 million sq. ft. (msf) of projects under construction, and contributes 50 percent to the Group’s business. The company has a pipeline of 5.8 msf of residential projects, which is likely to be launched over the next two quarters.
