Bengaluru-based real estate developer Shriram Properties Ltd (SPL) plans to develop 5.4 million square feet (msf) with an estimated sales value of Rs 2,800 crore in FY23-24. SPL is looking at pre-selling 4.8 msf for about Rs 2,330. This investment will see about 11 launches across Bengaluru, Chennai, and Kolkata, including three stuck assets in Bengaluru, SPL Managing Director M Murali told Moneycontrol.
"The guidance we provided last year was a presales volume of 4.25 to 4.5 msf in FY 22-23, and we achieved 4.02 msf. For the current year we have set a confident target of 4.8 msf," he added.
In FY22-23, SPL's profit after tax (PAT) jumped from Rs 18 crore (in FY21-22) to Rs 68 crore. The company is planning to increase its construction spend from Rs 500 crore (in FY21-22) to Rs 753 crore in FY23-24.
This fiscal, close to 67 percent of the projects will be developed jointly (along with other developers/landowners).
Projects breakup
The first two launches will take place in Bengaluru in Q1. Bengaluru comprised about 62 percent of SPL’s launches last year, while Chennai comprised 22 percent, and Kolkata 16 percent.
About four projects with a development potential of 2.9 msf will be launched in Chennai, while six projects with a development potential of 1.6 msf will be launched in Bengaluru, and another project will be launched in Kolkata.
While the company is looking at north, south and east Bengaluru, in Chennai the new launches will be in the southern, south-eastern, and western parts of the city. In Kolkata, SPL is only looking at Uttarpara towards the north of the city.
"The average rate will be about Rs 6,000 per square foot for 1,200-1,300 sq ft apartments. About 57 percent of the launches will be in the mid-market segment, 21 percent in plotted development, 8 percent in the luxury segment, and the rest in the affordable range," Murali said.
The company also plans to foray into Pune for residential launches by the end of this financial year.
In Bengaluru, the construction of a villament project is currently underway in Sarjapura. With a development potential of 6 lakh sq ft, phase 1 of the project will be completed by March 2024, and each unit will be priced at Rs 1.6-1.7 crore.
Delayed projects
In October last year, Shriram Properties and ASK Property Fund agreed to establish an investment platform for the acquisition of residential real estate projects, especially stuck real estate assets.
"We have already deployed Rs 125 crore to acquire stressed assets and we intend to deploy another Rs 190 crore to acquire more stuck assets (in Bengaluru) within the next few months,’’ said Mr Murali.