Bengaluru-based Sattva Group announces a bold investment of INR 12,000 crore to INR 14,000 crore (USD 1.5 billion to USD 1.75 billion) over the next 2-3 years, driven by robust growth in India's real estate sector. The strategy marks a shift towards residential development following a surge in sales, aiming to double residential revenues to INR 6,000-6,500 crore (USD 750-812.5 million) by FY25. Expanding into Chennai and Mumbai, Sattva Group plans 23 million sq. ft under construction and eyes a significant commercial office market recovery with projects housing Google, Novartis, and JP Morgan. Financing includes equity, debt, and partnerships with firms like Blackstone Inc., underscoring their confidence in India's property market resilience.
Bengaluru-based real estate developer Sattva Group is set to embark on a major expansion, with plans to invest INR 12,000 crore to INR 14,000 crore (USD 1.5 billion to USD 1.75 billion) over the next 2-3 years. This ambitious plan highlights the company's confidence in the ongoing boom in the Indian property market.
The investment strategy reflects a strategic shift for Sattva Group. Prior to the pandemic, commercial office space was a primary focus. However, the surge in residential sales in recent years has prompted them to prioritise housing development. The company aims to nearly double its residential sales from INR 3,500 crore (USD 437.5 million) in FY24 to an impressive INR 6,000-6,500 crore (USD 750-812.5 million) by FY25.
This INR 14,000 crore investment plan also includes venturing into new markets. Beyond their established presence in Bengaluru, Pune, and Hyderabad, Sattva Group will be entering Chennai and Mumbai for the first time. They boast a robust pipeline of ongoing projects, with a significant 23 million sq. ft currently under construction and an additional 65 million sq. ft in the planning stages. This ambitious pipeline includes a new 4.5 million sq. ft office development planned for Chennai's Old Mahabalipuram Road (OMR).
While the residential market is a key focus, Sattva Group remains cautiously optimistic about the commercial office space. They report a "resurgence and stronger pick-up in office leasing" this year, suggesting a potential recovery from the challenges posed by the pandemic. The company has roughly 9 million sq. ft of office projects currently under development and boasts a prestigious tenant list including Google, Novartis, and JP Morgan.
Sattva Group will finance this large-scale investment through a strategic mix of equity, debt, and internal revenue generated from sales. They have also partnered with the American investment firm Blackstone Inc., which has played a key role in developing 32 million sq. ft of their projects.
Sattva Group's investment plan signifies the confidence that some real estate developers have in the continued growth of the Indian market. Their focus on both residential and commercial sectors positions them to capitalise on current market trends.
Advertisement
Facebook
Whatsapp
