Sumadhura Infracon, a prominent real estate developer, intends to invest Rs 5,000 crore to double its property portfolio in the next three years. The company recently acquired 45 acres along Bengaluru's Outer Ring Road for a commercial project and plans to construct three million square feet of residences and develop two million square feet of land in 2023. Chairman G. Madhusudhan highlighted that internal accruals and strong financial institution partnerships would fund most of the projects. The company also ventures into plotted development with nearly 100 acres in Devanahalli, aiming for a total of five million square feet of construction.
Sumadhura Infracon, the eminent real estate developer, has unveiled an audacious blueprint, outlining its intent to invest a substantial Rs 5,000 crore. This strategic endeavour is designed to more than double the expanse of its residential and commercial property portfolio within the upcoming three years, as disclosed by its chairman in an exclusive interview with ET.
Marking a decisive step in this visionary expansion, the company recently acquired a sprawling 45-acre parcel of prime land situated along Bengaluru's vibrant Outer Ring Road. This strategic acquisition serves as the canvas upon which Sumadhura Infracon plans to craft a cutting-edge commercial facility. In the year 2023, the company is poised to embark on the development of an impressive three million square feet of residential properties, alongside the transformation of an additional two million square feet of land.
Chairman G. Madhusudhan confidently affirms that the company's robust financial position will primarily generate project financing from internal sources. Additionally, they nurture solid relationships with numerous financial institutions and are actively involved in discussions to usher in a new era of growth through strategic platform agreements. As part of its diversification strategy, Sumadhura Infracon has ventured into the realm of planned development.
The company's astute real estate acumen led to the acquisition of nearly 100 acres of prime real estate in Devanahalli, an emerging real estate hotspot in close proximity to Bengaluru. With an impressive five million square feet of construction already underway, the company envisions a bright future in this sector.
Madhusudhan provided an outline of the ambitious plan, signifying that the company will initiate plotted development with two million square feet in FY 2023–24, with a subsequent addition of three million square feet in FY 2024–25. In a real estate landscape characterized by robust demand from discerning homebuyers, sales have surged significantly, bolstering the fortunes of both eminent national and regional developers. Leading the charge are the colossal markets of Mumbai and Bengaluru, each contributing an imposing 21 percent to the overall sales volume.
Notably, a substantial portion of these residential sales can be attributed to projects initiated within the past 18 months. The real estate sector has witnessed a remarkable upswing, witnessing the unveiling of more than 151,000 residential units during the first half of 2023. This figure represents a remarkable 24 percent surge compared to the preceding year.
Encouragingly, data from JLL indicates that this surge in project launches is not merely an isolated phenomenon; it has been sustained on a quarterly basis. Q2 2023 alone witnessed the introduction of over 76,000 units into the market. Sumadhura Infracon's visionary expansion plan underscores its commitment to innovation and growth. As the company charts its course towards a promising future, it is poised to leave an indelible mark on the ever-evolving real estate sector, signalling an era of transformation and progress in this dynamic industry.
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