Arvind SmartSpaces Limited (ASL), the real estate development company of Lalbhai Group of companies, is planning to focus on residential real estate projects in Ahmedabad, Surat, Pune, Mumbai and Bangalore for FY25. Riding on the back of good cash flow, zero debt and a Rs 900 crore investment platform with HDFC Capital, ASL is targeting to add new inventory worth Rs 4,500 – 5,000 crore to its portfolio.
Kamal Singal, Managing Director & CEO, Arvind SmartSpaces, said, “Since Covid, mid range and luxury residential demand has got more traction than the affordable segment which is why we are not focusing on affordable housing right now. In the medium term, ASL’s focus on the Gujarat, Bangalore and Maharashtra market will follow the ratio of 40:40:20. In the Bangalore market, there is a demand for high rise and vertical development both. There are three-four high rise projects in the ASL pipeline in Bangalore. In Maharashtra, our focus is on Pune and Mumbai as we consider them one market. Discussions are going on to create a pipeline and within the next couple of months we are planning to bring two-three big projects of around 50 – 100 acres in Pune and Mumbai.”
Talking about the Gujarat market, He said, “Arvind SmartSpaces currently has more than 1,000 acres under development in Ahmedabad making a total Gujarat portfolio of 68.8 million square feet (msf), which includes 13 msf in Surat and the remainder in Ahmedabad. Of this portfolio, 42.2 msf is planned (including 13 msf in Surat), 23.4 msf is ongoing, and 3.2 msf has been completed.”
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ASL’s current portfolio of around 1,400 acres of land is dominated by Gujarat market with a share of around 60% (20 projects) while the Bangalore market (11 projects) contributes around 34% and the rest is Maharashtra market as it currently has only one project in Pune. 20% of its total portfolio comprises vertical development while 80% of the portfolio is dedicated for horizontal development.
“Out of the total ₹2,500 crore worth of new launches planned in FY25, ₹1,500 crore will be concentrated in Ahmedabad and Surat. From the ₹5,500 crore business development pipeline for ASL, we anticipate that ₹1,200 to ₹1,500 crore will be coming from Gujarat in FY25”, added the ASL MD.
Talking about ASL’s performance in FY24, He said, “In FY24, ASL has recorded the highest ever sales of more than Rs 1,100 crore, a 38% growth compared to FY23, and we had a pre booking collection of Rs 876 crore from our customers. Last year we added an inventory worth around Rs 4,000 crore and will add another Rs 4,500 – 5,000 crore worth of new inventory in FY25. Furthermore, our operating cash for FY24 was at Rs 450 crore compared to Rs 200 crore in the last financial year.”
It may be mentioned that in Ahmedabad, ASL saw bookings of around Rs 690 crore in FY24 against the bookings of around Rs 340 crore in FY23. It is also coming up with a 500 acre township project in Kalyangadh, Ahmedabad and a 300 acre project in Surat (expected to be launched in FY25). Both of these projects are worth around Rs 2,200 – 2,500 crore.
“Ahmedabad is one of the best growing cities in India because it has a demand pull due to the Gujarat growth story. In Ahmedabad, new land or the land in the outskirts like Ambli Road is costlier than the land in the city which is the other way round for other cities in India. It can be understood with the fact that the current FSI for GIFT city is more than Rs 6000 per sq ft while it was around Rs 1,500 per sq ft just two years back”, concluded Kamal Singal
From: financialexpress
Financial News
