Tier II Cities For Affordable Homes Shapoorji Pallonji Joyville Brand
Shapoorji Pallonji Joyville Brand: Shapoorji Pallonji group is seeking opportunities for affordable housing projects in Kochi, Chennai, Ahmedabad, Indore, Ghaziabad and Coimbatore. It plans to develop 10-12 million sq ft in the second phase of its joint investment programme with World Bank arm IFC, Asian Development Bank and Standard Chartered Private Equity.
Shapoorji Pallonji would, along with its partners, spend Rs 800 crore, said chief executive officer, Shapoorji Pallonji Real Estate. The $5.5-billion group had last year tied up with investors to develop the affordable housing projects branded as Joyville. Shapoorji Pallonji and the investors brought in Rs 1,500 crore as initial capital for buying land and other purposes.
The group plans to launch four more affordable housing projects Shapoorji Pallonji Joyville Brand in Pune, Gurugram, Hyderabad and Bengaluru in the first phase of the programme. Pune and Gurugram projects will be launched in the next six months and the others subsequently. Shapoorji Pallonji has launched two projects in Kolkata and Virar near Mumbai. In total, the projects will comprise 16-17 million sq ft and will be completed in six years.
Shapoorji Pallonji bought a land parcel in the Hinjewadi area of Pune recently and was planning to buy two more land parcels by March. The group has raised Rs 300 crore in construction loans from banks and needs another Rs 400 crore for construction.
Shapoorji Pallonji Joyville Brand was constructing over 30 million sq ft of affordable houses in Andhra Pradesh, Maharashtra and Uttar Pradesh. The contracting arm has a turnover of Rs 7,500 crore and 30-35 per cent of its business comes from building affordable houses.
Mumbai-based Hiranandani Communities is planning to build 500 affordable homes within Hiranandani Parks at Oragadam in Chennai, where it has identified 10 acres for the purpose. The houses will measure 40-60 sq m. Hiranandani Communities has pegged their cost at Rs 20 lakh each.
Lodha group, another Mumbai-based developer, has sold more than 5,000 affordable houses worth over Rs 2,500 crore and delivered 4,700 of these to customers in 2016-17.
Developers like Shapoorji Pallonji, Hiranandani, Tata Housing and Sunteck Realty, to name a few, are launching affordable housing projects to capitalise on incentives announced by the government. The new launches in this segment will help these developers align their product portfolio to the new market scenario.
Source Link- http://www.business-standard.com/article/companies/shapoorji-jv-eyes-tier-ii-cities-for-affordable-homes-117120500054_1.html