 "India's real estate sector, significantly buoyed by a robust economy, has emerged as a pivotal player in the country's development. With an 18 per cent share in national employment, real estate is the largest employment generator after agriculture. C")
Vardhman Amrante, the real estate arm of textiles major Oswal Group, on Monday announced that it will invest ₹1,350 crore over the next three years to develop three to four commercial projects as well as integrated residential townships in Ludhiana and Bhatinda.
Adish Oswal, Chairman and Managing Director, Oswal Group, said the group would concentrate on Punjab, where demand for quality commercial projects was high and few reputed developers were active in this space.
Funding for the projects will be met largely through internal accruals and sales, while the company may consider raising debt depending on the funding requirements of each project.
Of the upcoming projects, Oswal said that around 70 per cent would be focused on the commercial segment, such as retail and hospitality. “The firm is in discussions with global hotel chains for the commercial projects as well,” he added.
An official in the know said that these global hospitality companies already have a presence in the Indian market.
Oswal added that the company was acquiring a few land parcels to develop projects which are currently undergoing regulatory approvals, and some land deals remain under discussion. He did not disclose further details about the upcoming projects. Residential projects will comprise low-rise constructions or integrated townships that will include retail space.
“There are a lot of opportunities in Punjab’s real estate market. The state needs quality housing, commercial, hospitality, and industrial park projects,” he said.
The company will undertake the investment through internal accruals, with Oswal adding that the firm may consider debt options at a later stage. “We will look to be as debt-light as possible,” he added.
The Ludhiana-based firm has completed four residential projects covering 1.5 million square feet so far and is currently building a shopping mall — Vardhman City Centre — spanning 270,000 square feet.
“The under-construction commercial centre is expected to be completed by Diwali next year,” Oswal said.
Commenting on the response to the upcoming commercial centre, Oswal said that the project will complete leasing in the next three to six months.
