Arvind SmartSpaces, the Ahmedabad-based real estate developer, is planning to expand its operations into the Mumbai Metropolitan Region (MMR) by the end of the current fiscal year. This expansion is driven by the company's strong financial performance and its aim to diversify its business across Ahmedabad, Bengaluru, and MMR. Arvind SmartSpaces plans to sign one or two projects in MMR, encompassing horizontal and vertical developments. The company is exploring various locations for these projects and is open to joint ventures and redevelopment opportunities. This expansion reflects the company's strategic approach to growth and expansion in key real estate markets in India.
Ahmedabad-based real estate developer Arvind SmartSpaces is set to expand its footprint into the Mumbai Metropolitan Region (MMR) by the end of the current fiscal year. Having witnessed an 11% increase in profits in Q1 of the fiscal year 2023-24, the company aims to diversify its business across Ahmedabad, Bengaluru, and MMR.
Plans include signing one or two projects in MMR, encompassing both horizontal (second homes) and vertical developments (suburban Mumbai). Arvind SmartSpaces is exploring locations like Karjat, Khopoli, Panvel, and Bhiwandi for horizontal projects and suburban Mumbai areas with residential market rates of Rs 15,000 to Rs 30,000 per square feet for vertical developments.
For vertical projects, the company is open to joint ventures, joint development, and old society redevelopment. For horizontal projects, Arvind SmartSpaces is seeking an average size of about 1,500 square feet carpet area in a large layout. The minimum target for top line sales in each MMR project is set at Rs 400-500 crore, with an aim for an EBITDA of 25% and a Profit After Tax (PAT) of 12%. The company envisions a business distribution of 40% from Ahmedabad, 40% from Bengaluru, and 20% from MMR in the future.
While focusing on MMR for expansion, Arvind SmartSpaces currently has projects underway in Ahmedabad and Bengaluru. In August, the company announced the signing of two horizontal projects in Ahmedabad, covering around 704 acres with an estimated top line potential of Rs 2,300 crore. Approximately 200 acres of a horizontal project in Ahmedabad are expected to launch soon. The company is adopting a joint development model for this project.
Regarding other regions, Arvind SmartSpaces clarified that it does not have immediate plans to enter the National Capital Region (NCR) real estate market or Hyderabad. While it keeps an eye on Hyderabad, there are no imminent plans for entry in the short or medium term. In Maharashtra, the focus remains on MMR, with an eye on Pune, but no plans beyond that in Maharashtra are currently underway or being monitored.
In terms of financial performance, Arvind SmartSpaces reported an 11% YoY increase in profit after tax (PAT) for Q1 of the fiscal year 2023-24, reaching Rs 8 crore. Revenue from operations grew by 11%, amounting to Rs 67 crore from Rs 60 crore in the corresponding period of the previous year. Total collections showed significant growth, rising by 54% to Rs 203 crore compared to the previous year.
As the company prepares for its entry into the MMR market, Kamal Singal, Managing Director and CEO of Arvind SmartSpaces, emphasized the consolidation efforts in Ahmedabad and Bengaluru while closely monitoring market dynamics. The company aims to maintain a balanced business across its operational regions, reflecting a strategic and measured approach to expansion and growth.
Advertisement
Facebook
Whatsapp
