2024-12-02 21:27:48 :
The group plans to triple its land bank to approximately 45 million sq ft over the next three years from the current net developable area of 15 msf. It also plans to go straight to Delhi National Capital Region (Delhi NCR) in fiscal 2026. In order to launch this ambitious plan, the group is currently in advanced negotiations with private equity investors.
“Over the next 12 months we will be deploying in another $1,500 to $Puravankara Group CEO and Executive Director Abhishek Kapoor said: “Rs 2,000 crore for new acquisitions of residential and commercial space” Mint in interview. “We aspire to be a national team player. But what we are really focusing on is huge growth between Bengaluru, Chennai, Hyderabad, Mumbai, Pune and Delhi.”
Kapoor said about 80% of the group’s focus will be on major large markets but will continue to look for opportunities in other markets such as Goa and Kochi.
Puravankara is funding these acquisitions through various investment avenues. Earlier this year, the group’s wholly-owned subsidiary Provident Housing raised capital $HDFC Capital Advisors (the real estate private equity arm of HDFC Group) is providing Rs 1,150 crore. The group also received board approval to raise the largest $According to company filings on BSE, Rs 1,000 crore was raised through qualified institutional placement (QIP) mode. They are currently in talks with more private equity firms and hope to use their internal accruals to fund upcoming projects.
“We are in deep conversations with multiple private equity partners about our residential commercial platform,” Kapoor said. “Of course, we have internal accruals and we have seen those grow to almost $An increase of Rs 2,000 crore in the past half year. “
Kapoor said the group has an Alternative Investment Fund (AIF), which it has brought to market and deployed and is currently returning capital. “Between all of this, I think we will continue to scale our acquisitions in line with our launch plans.”
pan-India strategy
As it expands in India, the group will primarily focus on the following areas: $2 Crore House Category. Kapoor explained that this strategy will work in most parts of the country, but it will change for markets like Mumbai and the National Capital Region of Delhi. As for South India, the company’s strategy and goals are clear – to continue doing 80% of its business in South India. $2 Crore Category.
“Opportunities in Mumbai are very limited $2 crore, both in terms of supply and demand possibilities,” he said. “The numbers will be slightly different because now we are actively pursuing opportunities in Mumbai in terms of redevelopment. We have signed up for three redevelopment projects and we are working on them so there are more to come. “
Puravankara last year acquired redevelopment rights of two housing societies in Mumbai with a gross development value (GDV) of $15 billion rupees. In September, the group entered the ultra-luxury market in south Mumbai by acquiring the rights for another project, Breach Candy Miami Apartments. The property can be priced up to $1,25,000 to $1,40,000 per sq. ft.
It has also acquired a 12.75-acre land in Thane with a potential GDV of $4,000 crore through its wholly-owned subsidiary Purva Oak Pvt. Ltd.
Startup in Delhi
The group plans to enter the Delhi-NCR market next year and is currently evaluating opportunities there. They are most likely to enter the Delhi market through the Puravankara brand, which offers luxury and super luxury projects.
“So the idea is to start from Puravankara. So far, that’s what we are working towards, but we have also got opportunities in Providence between Gurgaon and Delhi,” he said. “Of course, there are some opportunities that have emerged in Noida. Let’s see what we conclude.”
“On the demand side, 35% of demand in cities currently comes from the mid-range market ( $5 million to $2 Crores). “The problem is, the supply in this space has come down significantly. I don’t think any other company is exploring this space,” said Rahul Purohit, co-founder and chief commercial officer of Square Yards.
Purohit explained that it was a good idea to tap into the luxury market, which was in disarray due to the bull run of the past two years.
“Traditional players have moved towards the luxury segment due to rising construction costs and land prices. Clearly, the luxury segment offers better margins to developers as they can charge a premium,” he said. However, he said there is a shortage of supply in the mid-range market.
Puravankara’s rival Signature Global started with affordable housing projects, cost $1.5-3 million people risk buying middle-income housing at $2020 value 4.5 million and above. In 2024, it launched its first two premium projects – Deluxe-DXP on Dwarka Expressway in Gurgaon and Titanium SPR on South Peripheral Road in Gurgaon. Both projects are priced at $Good sales of Rs 3.5-5.5 Crore; Mint reported earlier.
Macrotech Developers Ltd also plans to move away from entry-level housing towards the “high-end middle-income and above” market, Abhishek Lodha, managing director and chief executive officer of Macrotech, said during a second-quarter earnings call. Of this, we will increase sales from approximately 85-90% to 50% from low- to moderate-income and entry-level housing within 3 years,” he said.
Others see it differently. Gulam Zia, executive director, said: “While they are talking about the 80-20 category segment, if they focus on luxury and super luxury in Mumbai and NCR, their revenue in 20 per cent of the market could be will be higher than 80% of the market. “For most developers who want above-average revenue growth, they cannot miss the Mumbai market and super luxury projects.”
acquisition burden
Although the company has a solid strategy, it is currently losing money on acquisitions. The company’s net loss expanded by more than 50% to $1,706 crore in Q2FY25, compared to Rs. $It suffered a loss of Rs 1,122 crore in the same quarter last year. In the first half of the year, the company’s total net loss was $5 crore, according to company documents. On the bright side, its revenue grew 36% year over year $5.2 billion rupees.
Over the past six months, the group has invested approx. $The land area is Rs 945 crore with a potential gross development value of Rs. $The newly acquired area of 5.8 million sq ft is Rs 9,700 crore.
Puravankara currently has 28 ongoing projects. The group has three brands in the residential segment: Puravankara, which offers luxury and ultra-luxury products, Provident, which offers mid-range and mass products, and Purva land, which focuses on planned developments. The group has also ventured into commercial real estate, which accounts for 10% of its business, with over 3 million square feet currently approved and in various stages of construction.
Kapoor said the group had undergone transformation over the past decade due to industry consolidation.
“I think the industry was pretty heavily consolidated during that period and that also gave brands like Puravankara the opportunity to participate in the consolidation process and capture more and more market share,” he said.
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