Puravankara Ltd Planning To Launch 7 New Affordable Housing Projects
Bengaluru headquartered Puravankara Ltd is planning to launch 15 new projects in the current financial year, at an investment of around Rs 35 billion. Seven of these projects will come up in its new affordable housing segment ‘Provident’ including one in Sri Lanka.
The realty firm, which saw a lot of traction in its affordable housing segment last fiscal, also said that it will enter low-cost housing segment as of and when the availability of housing loan becomes easier for home buyers.
Our investment in new projects will be around Rs 35 billion, which will be funded through internal accruals and construction finance from banks, Managing Director of Puravankara told.
The new affordable housing launches will come up in Indian cities like Bengaluru, Mumbai, Pune, Goa, Cochin, Chennai, Mumbai along with one planned near Colombo in Sri Lanka.
Sales growth in Provident gives us confidence that this segment will constitute 55 per cent of total portfolio in coming years, he added.
In FY18, while total sales volume that includes company’s both affordable and premium segments, grew by 51 per cent to 3.25 million square feet, sales from affordable housing segment Provident grew by 173 per cent during this period.
Apart from its focus on the residential segment, the company is also slowly diversifying into the commercial real estate and is eyeing a portfolio of around 6 million sq. ft. in next five years. Currently, the commercial segment constitutes less than 5 per cent of its total developed area.
Puravankara which has a debt level of Rs 22.47 billion by the end of March 2018 said the company may not have to raise debt as construction finance raised from banks and sales revenue would be able to cover project-related costs.
Puravankara with a land bank of around 72 million square feet posted a net profit of Rs 920 million and a total income from operations of Rs 15 billion in FY18.
Source Link- https://www.business-standard.com/