Indiabulls Real Estate has made a series of strategic acquisitions, expanding its residential development portfolio in Bengaluru and Chennai. The company acquired the rights to three major projects from Embassy Property Developments - Embassy Residency in Chennai, Embassy Eden in North Bengaluru, and Embassy East Avenue in Whitefield, Bengaluru. These acquisitions, totaling over 1.6 million square feet of saleable area, strengthen Indiabulls' presence in key real estate markets. Alongside these developments, the company also completed the acquisition of Equinox Developments. In a separate announcement, Indiabulls Housing Finance reported a 21% rise in consolidated net profit for the March quarter, reflecting its robust financial performance. The company's improving asset quality, with declining gross and net non-performing assets, further underscores its operational efficiency.
Indiabulls Real Estate and its wholly-owned subsidiary, Fama Real Estate, have acquired residential development projects from Embassy Property Developments (EPDPL) in Bengaluru and Chennai.
The company acquired Embassy Residency, a proposed high-rise residential project spanning 8.2 acres with a saleable area of approximately 1.4 million square feet, located in OMR, Chennai. This acquisition was made through the purchase of RGE Constructions and Development from EPDPL for a cash consideration of around INR 119.55 crore.
Furthermore, Indiabulls Real Estate acquired Embassy Eden, a proposed residential villa development project spread over 31.30 acres with a saleable area of 0.7 million square feet, located in North Bengaluru. This acquisition was made through the infusion of approximately INR 465.71 crore in capital into Sion Eden Developers, a subsidiary of EPDPL.
Additionally, the company acquired Embassy East Avenue, a proposed residential development project spanning around 3.75 acres with a saleable area of approximately 0.5 million square feet, located in Whitefield, Bengaluru. This acquisition was made through the purchase of Vigor Developments from EPDPL for a cash consideration of approximately INR 117.28 crore.
Indiabulls Real Estate has also completed the acquisition of 100% equity share capital of Equinox Developments for an enterprise value/cash consideration of approximately INR 0.12 crore.
In a separate development, Indiabulls Housing Finance Ltd reported a 21% increase in its consolidated net profit to INR 319 crore for the March quarter, compared to INR 263 crore in the corresponding period of the previous year. The company's revenue from operations rose to INR 2,205 crore for the March quarter, up from INR 2,075 crore in the year-ago period.
The company's total income increased to INR 2,255 crore, compared to INR 2,077 crore in the same quarter of the previous year. Regarding asset quality, Indiabulls Housing Finance's gross non-performing assets (NPAs) declined to 2.69% at the end of March 2024, down from 2.85% a year ago. Similarly, the company's net non-performing assets (NPAs) moderated to 1.52% from 1.89% of the total advances in the previous year.
Indiabulls Real Estate's strategic acquisitions and the strong performance of its financial services arm demonstrate the company's ability to capitalize on emerging opportunities in the real estate and housing finance sectors. These moves reinforce Indiabulls' commitment to expanding its footprint and delivering value to its stakeholders. The company's focus on both residential development and financial services positions it well to navigate the evolving market dynamics and continue its growth trajectory.
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