Puravankara’s Fifth Of Portfolio Will Comprise Commercial Properties in 4-5 Years
Bengaluru-based property developer Puravankara, predominantly a residential developer currently, expects a fifth of its portfolio consisting of commercial properties the next four to five years. It is looking to develop commercial properties in Bengaluru, Hyderabad, Chennai and Mumbai, and Pune. In the next 3-4 years, the company is planning to develop a portfolio of commercial properties of 8.5 million sq ft. Of which, the company is looking to launch two commercial property projects this financial year in Bangalore, both will have an area of about 3 million square feet. The company's plans come at a time when analysts said, "Vacancies at the listed REITs are set to raise another 200 to 300 basis points due to work from home norm triggered by the pandemic and companies delaying their leasing decisions." "We believe commercial property market is showing signs of improvement and wil pick up by end of this financial year ," Abhishek Kapoor - Chief Executive Officer - Puravankara limited said . He said, "The Company will acquire land, develop the properties and exit at right time and at right valuations. In the last quarter, the company sold its land for commercial property in Bengaluru to Godrej Fund Management for Rs 685 crore. Puravankara will develop one million sq ft property as part of the deal. The company would raise capital for both commercial and residential properties.We want to scale up the business for which capital is important. We wil raise equity, quasi equity and debt for that. The company's debt to equity level has come down from 1.34 last year to.0.9 times now and average cost of debt has come down to 11.78 per cent.The company is looking to launch 14 million sq ft of residential properties in FY22, of which half will be under its affordable housing brand Provident Housing and the rest under its flagship brand Puravankara and plotted developments."
Tags : News/Views Mumbai Pune Bengaluru Hyderabad Chennai Puravankara commercial properties REITs Fifth Portfolio Comprise