Bengaluru-based real estate developer Century Real Estate plans to invest Rs 3,400 crore to launch 9 million square feet (msf) of projects, including office spaces and residential launches, in Bengaluru with a potential revenue of Rs 9,000 crore by the end next financial year.
The company also plans to launch 7 msf of an integrated business park in north Bengaluru, with smaller portions of residential and retail segments within the next 3-5 years, Ravindra Pai, Managing Director of Century Real Estate told Moneycontrol.
“To date, we have delivered close to over 3 msf of residential projects, translating to about 4,000-4,500 apartments. Additionally, we have constructed over 3,000-3,500 plots spread across 800 acres of development,” Pai added.
The company is targeting Rs 1,000 crore in revenues in FY24, almost double the last year’s.
Currently, Century has about 3.5 msf of residential space under development at various stages.
For residential, the company is looking to launch a villa development (the second phase of the existing villa project Century Wintersun), another plotted development and a luxury apartment project.
The upcoming launches will include about four apartment projects at prime central and prime suburban locations, two villa developments and a couple of plotted developments within this financial year.
The upcoming launches this year will be about 1.5 msf, Pai said. He added that real estate in Bengaluru is currently witnessing strong demand in the mid-market segment. “However we have product offerings in the luxury side. Considering these are the two segments where the demand is currently rising, we will continue to have residential product developments in these two segments,” he said.
For residential launches, Century is largely targeting northern Bengaluru and the central business district. The company does not plan to foray into a new city any time soon.
The city-centric projects will be launched at a price range of about Rs 4.5 crore to Rs 5 crore. The company is also looking to launch a luxury villa development in north Bengaluru’s Doddabalapur and another luxury project in Indiranagar.
Another residential project close to the eastern IT corridor of Marathahalli is under the planning stage and will be launched within FY25.
For plotted development, the company has already launched about 4,000 plots in the sizes of 30×40 and 40×60 sold in ticket sizes of about Rs 35 lakh to about Rs 60 lakh.
“In the next quarter, we’re looking to launch one more large plotted development, close to the airport, in northern Bengaluru, spread across 35 acres,” Pai said. Our total plotted development portfolio for this year comes up to around 800 plots, he added.
Among the upcoming launches, the land has already been acquired, and the plots will be launched within 18-24 months.
Integrated business parks
Century Real Estate currently has 5 msf of commercial launches under development.
And the company is looking at another 7 msf of business parks in northern Bengaluru with office spaces, residential and retail. Pai said the construction will commence next year and will take about 5-7 years to complete the development.
For the ongoing office developments, Century has entered into a joint venture with Prestige Group close to Outer Ring Road, which is about 2.4 msf. The company has also partnered with Godrej Fund Management for another commercial development of about 2.5 msf.
For the Prestige Group partnership, Pai said the sanctions have already been received and the company hopes to commence construction within 3-4 months.
source : moneycontrol