Bengaluru real estate firm Sattva Group will invest Rs 12,000-14,000 crore over the next three years to build housing, office and hotel projects and is in talks with physical education major Blackstone to launch REITs for monetization of commercial assets.
Bengaluru-based Sattva Group is one of India's leading real estate developers. It has completed 140 projects covering an area of 80 million square feet in the last 30 years. Around 23 million square feet of area is under construction and 65 million square feet are in the pipeline.
Addressing a press conference here, Sattva Group CEO Bijay Agarwal said, "We are very optimistic in the real estate market. We will invest Rs 12,000-14,000 crore over the next three years in residential, commercial and hospitality sectors." .
The investments will be funded through equity, debt and internal provisions, he said, adding that the company could raise equity funds at the project level if required.
Agarwal noted that demand from the residential segment has been very strong post-COVID pandemic, while leasing activities in the office market have also returned to normal.
He said the company would enter the Mumbai real estate market this year and plans to launch a project in the second half of this fiscal year.
Agarwal highlighted that the company's coworking and co-living joint ventures, Simpliwork Offices and Colive, have been performing well and are also expanding.
"We plan to list our coworking and coliving businesses on stock exchanges in the next 2-3 years by launching public issues," Agarwal said.
Sattva Group has more than 50 per cent stake in both Simpliwork and Colive.
When asked about his plan to launch Real Estate Investment Trust (REIT), he said: "We are in the initial stage of discussion with Blackstone."
Agarwal did not give any timeline for the launch of public issue of REIT to monetize business assets jointly developed by Sattva Group and global investment firm Blackstone.
Sattva Group and Blackstone have a joint portfolio of around 32 million sq ft, of which 18 million sq ft are already completed.
There are four listed REITs in India and of them, three are backed by office assets that generate rentals, while one REIT has a huge portfolio of shopping malls.
Shivam Agarwal, vice president (strategic development), Sattva Group, said the company is looking at growth opportunities across geography and in different verticals of the real estate sector.
Adrija Agarwal, vice president (business development) at Sattva Group, said the company has two hotels in Kolkata with around 620 rooms.
The group is developing Taj Luxury Resort in Bengaluru with 294 rooms and 60 villas.
"We want to expand our hotel business. We are in talks for some more deals," Adrija said.
When asked about the group's rental income, Sattva Group vice-chairman Pradeep Kumar Dhandhania said annuity income amounted to around Rs 2,000 crore in the last fiscal year and the company expects a 20-fold growth. percent this fiscal year.
Sattva Group has completed an area of 80 million square feet in three decades, of which, the commercial segment is 45 million square feet and the residential segment is 35 million square feet.
In the commercial segment, Sattva Group has completed 20 million sq ft in Bengaluru and another 5 million sq ft is under construction.
In Hyderabad, Sattva Group has completed 25 million sq ft of commercial space and another 3 million sq ft is under construction in HITEC city.
The CEO said the group will soon start work on 4.5 million sq ft of office space in Chennai.
In Pune, 1 million sq ft of commercial space is under construction.
Bengaluru-based Sattva Group is one of India's leading real estate developers. It has completed 140 projects covering an area of 80 million square feet in the last 30 years. Around 23 million square feet of area is under construction and 65 million square feet are in the pipeline.
Addressing a press conference here, Sattva Group CEO Bijay Agarwal said, "We are very optimistic in the real estate market. We will invest Rs 12,000-14,000 crore over the next three years in residential, commercial and hospitality sectors." .
The investments will be funded through equity, debt and internal provisions, he said, adding that the company could raise equity funds at the project level if required.
Agarwal noted that demand from the residential segment has been very strong post-COVID pandemic, while leasing activities in the office market have also returned to normal.
He said the company would enter the Mumbai real estate market this year and plans to launch a project in the second half of this fiscal year.
Agarwal highlighted that the company's coworking and co-living joint ventures, Simpliwork Offices and Colive, have been performing well and are also expanding.
"We plan to list our coworking and coliving businesses on stock exchanges in the next 2-3 years by launching public issues," Agarwal said.
Sattva Group has more than 50 per cent stake in both Simpliwork and Colive.
When asked about his plan to launch Real Estate Investment Trust (REIT), he said: "We are in the initial stage of discussion with Blackstone."
Agarwal did not give any timeline for the launch of public issue of REIT to monetize business assets jointly developed by Sattva Group and global investment firm Blackstone.
Sattva Group and Blackstone have a joint portfolio of around 32 million sq ft, of which 18 million sq ft are already completed.
There are four listed REITs in India and of them, three are backed by office assets that generate rentals, while one REIT has a huge portfolio of shopping malls.
Shivam Agarwal, vice president (strategic development), Sattva Group, said the company is looking at growth opportunities across geography and in different verticals of the real estate sector.
Adrija Agarwal, vice president (business development) at Sattva Group, said the company has two hotels in Kolkata with around 620 rooms.
The group is developing Taj Luxury Resort in Bengaluru with 294 rooms and 60 villas.
"We want to expand our hotel business. We are in talks for some more deals," Adrija said.
When asked about the group's rental income, Sattva Group vice-chairman Pradeep Kumar Dhandhania said annuity income amounted to around Rs 2,000 crore in the last fiscal year and the company expects a 20-fold growth. percent this fiscal year.
Sattva Group has completed an area of 80 million square feet in three decades, of which, the commercial segment is 45 million square feet and the residential segment is 35 million square feet.
In the commercial segment, Sattva Group has completed 20 million sq ft in Bengaluru and another 5 million sq ft is under construction.
In Hyderabad, Sattva Group has completed 25 million sq ft of commercial space and another 3 million sq ft is under construction in HITEC city.
The CEO said the group will soon start work on 4.5 million sq ft of office space in Chennai.
In Pune, 1 million sq ft of commercial space is under construction.
