 "Angad Singh Bedi")
The BCD group's stressed projects are now worth close to Rs 1,000 crore, with the latest such assets having been acquired in Gujarat and Rajasthan, Angad Singh Bedi, managing director, BCD group told Pratigya Yadav in an interview. This is in addition to the company's existing pipeline of projects in Indore, along with a few assets in Mumbai and Bengaluru. Edited excerpts:
1. How has this year been so far in terms of the growth in the residential and commercial segments across India? How do you see it for the rest of the year?
The overall growth in both segments has been phenomenal. In fact, if we look at the last 10 years’ data, we will see that the momentum has not slowed down, which was seen to some extent during the 2002-03 period. The first quarter of this year started on an extremely positive note, with about 75,000 new residential unit launches across the seven key markets. This is a growth of almost 24 per cent year-on-year (YoY).
Besides, the year started with the announcement of new projects and a lot of previous inventory has also been sold. What's more, new tastes and consumer preferences are emerging, and are strengthening the footprint of the premium segment.
While the commercial segment is also on a growth curve, it is still evaluating various business models for the longer term. Gross leasing volumes in the office segment have risen almost 23 per cent YoY in Q1.
2. You recently ventured into a rental senior living business in Bengaluru. How is the project faring?
The rental senior living project in Bengaluru aims to cater to a specific human need, rather than simply earn profit. During Covid we saw people looking for second homes and parents also needed options. There were fewer good rental options and the available senior living models were all capital-intensive with a longer-range commitment. Being one of the niche service providers and due to the high rentals that came in due to the demand for the product, HNI and NRI investors also invested extensively. They are extremely happy as there is an 8-9 per cent rental growth YoY--the highest in the residential segment.
3. Any plans to take such projects to the pan-India level? Recently you said you would be entering the NCR market too. By when is that expected?
We already have a pan-India presence. We are actively working in seven states, with operations in several smaller cities. The NCR market was earlier on the backburner, but this year we are close to signing off a project of about half a million sq ft of residential property. We also want to bring our global expertise and design know-how to the NCR market which suffered a slowdown. There is a huge demand from the premium luxury segment, and its shot past the current supply today. We want to explore this opportunity as there is a huge demand from higher income groups for luxury units, especially in the micro markets of Gurugram and Noida.
4. Give us an idea of the pipeline of stressed projects you are handling. Do you plan to expand the stressed assets management business to other cities?
For the funds we are going to announce our first closing in the month of June 2023. We have a pipeline of close to Rs 1,000 crore worth of projects, with our breakthrough coming from cities in Gujarat and Rajasthan. This is in addition to projects in Indore and a few in Mumbai and Bengaluru. These stressed assets are being carefully evaluated from all angles because BCD is partnering with Nisus not only to provide funds but alsi to offer resolution so that these projects are finally delivered.
5. How many Grade A assets (residential and commercial) have been lined up for launch later this year?
We have a 4 million sq ft Grade A asset in CBD at the design stage, due for launch later this year. This is a biophilic design and planed to a platinum LEED with a sustainable concept.
6. What are your expansion and investment plans in the near future? Any specific projects?
Apart from the growth of our development portfolio, the launch of a mega premium project in North Bengaluru is currently in the pipeline. Besides, there are good opportunities in Nandi Hills and close to IBC Roads. We are also on the verge of closing some joint-development deals and are looking into launching these unique semi-luxury projects in the niche micro-markets. Our investment strategy remains bullish on the Indian markets and we will continue to invest extensively on the residential and commercial segments across the country.
