Tata Realty will invest Rs 4000 cr in residential and commercial projects
Tata Realty and Infrastructure is investing around Rs 2,000 crore each in residential and commercial projects over the next two years, including the relaunch of the stranded Mulund project in Mumbai, based on significant sales growth last year and the steady recovery in demand, said a senior company official.
The Tata Group company, which focuses on residential, commercial and commercial properties in the real estate space and large infrastructure projects, is currently experiencing higher demand, especially for ready-to-move-in residential units.
It added more than 1,500 construction workers during the pandemic, bringing its overall workforce to over 5,000 now. Before the coronavirus pandemic, it had only 3,500 workers and more than 670 employees.
“We had the best sales in 2020-21, with a turnover of over Rs 1,500 crore, which is 120% more than what we had targeted for the year given the pandemic.
“On an annualized basis, revenue increased 15% from 2019-2020; and in terms of volume, we sold 1,300 units,” Sanjay Dutt, Managing Director and Managing Director of Tata Realty told PTI.
Dutt added that the company had the best sales on record in the fourth quarter of 2020.
Regarding the current demand scenario, he said that from July they are seeing a strong recovery. “Everything we lost in the first quarter has already been recouped in the second quarter and we plan to surpass last year’s numbers in the fourth quarter and end the full year with revenue growth of over 20%.” , did he declare.
The company makes about 70 percent of its sales from affordable, high-end units and the rest comes from luxury projects, Dutt added.
“We are also focusing on the residential and commercial segments when it comes to investments (capital spending). As a result, we have budgeted 2,000 crore rupees each for residential and commercial projects over the next 24 months,” he said. he declared.
He said the company had four residential projects under construction now, Serein in Mumbai, Eureka Park and La Vida in NCR-Delhi, and 88 East in Kolkata with more than 2,500 units.
Dutt did not disclose any potential income from them or the investments.
“We have a diversified portfolio of 40 to 45 million square feet under construction, which is a mix of luxury and premium projects with Serein, Eureka Park and La Vida in the premium category and 88 East in the luxury, ”he added.
The company is also in the process of relaunching the stalled Mulund (east) project, which when completed will have a salable area of three million square feet and will be the most valuable project in Mumbai and hopes relaunch it. by March.
It was blocked for strategic reasons. “We are awaiting clarification on the design now and there will be many 50-story towers,” he said.
Indicating better than industry sales, he said they only had about 5,300 inventory ready broken down into affordable, upscale, luxury and second home categories, and about 1,100 units on track. of completion, Dutt said.
The company has 17 residential projects and three commercial projects under construction with more than 3,000 units and even in the midst of the pandemic, it completed four residential projects last year and will complete six this year.
Dutt attributed the better-than-industry performance to three things they did during the pandemic.
First, the company motivated the team by taking care of all staff, including contractors; did not cut wages; and gave medical insurance to everyone. Second, over the past three years, the company has invested heavily in the digital platform. Third, the company cut its marketing budget by 50% but made up for it with a digital push, he added.
On the large Bengaluru project near the airport, he said it is being built as a joint venture (JV). It is a 140-acre township with plotted units, villas and skyscrapers as well as commercial development. The first phase will start in October.
Likewise, the second phase of the Nodia under construction project will begin in the first quarter of 2022. That aside, it has three affordable projects coming up on the Sona road in Haryana, which has yet to get the approvals.
Regarding commercial real estate, which will also generate an investment of around Rs 2,000 crore over the next two years, Dutt said the company now has seven million square feet of space leased and owned in association. with a partner.
Regarding the occupancy rate, he said it was 92-95% and the company also charged 100% rent. “Our rentals have increased by 8% this year.
It is three million square feet of commercial space under construction and will launch 23 million square feet over the next three years.
Over the past 35 years, Tata Realty has completed 31 residential projects in Bengaluru, Bhubaneswar, Chennai, Delhi-NCR, Goa, Gurugram, Kasauli, Kochi, Kolkata, Lonavala, Nagpur, Noida, Mumbai and Pune.
On the advertising side, there is Mumbai, Gurugram and Chennai.
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