Puravankara eyes bigger share from commercial properties in 4-5 years

It is looking to develop commercial properties in Bengaluru, Hyderabad, Chennai and Mumbai and Pune, is aiming at 8.5 mn sq ft in next 3-4 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 , he said , adding that 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 ," Kapoor 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," he said.

He said 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,  he said .

Kapoor added 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.

• It is looking to develop commercial properties in Bangalore, 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 

• In the last quarter,  the company sold its  land meant for commercial property in Bangalore to Godrej Fund Management for Rs 685 crore.