Realty firm Parsvnath Developers Ltd will invest over $four billion in the next 5 years to develop its existing land bank.
NEW DELHI: Realty firm Parsvnath Developers Ltd will invest over $four billion (about Rs 16,000 crore) in the next 5 years to develop its existing land bank, which would translate into more than 100 projects across India.
Parsvnath's current land bank aggregate a saleable area of over 153 million sq ft and the company has projects in all the real estate verticals that include residential, townships, commercial, hotels, IT parks, SEZs and Delhi Metro.
"We will invest over four billion dollars to develop the existing land bank of 153 million sq ft by fiscal 2011-12," Parsvnath Developers Chairman Pradeep Jain said.
Jain said the project cost of existing land bank is over five billion dollar and over a billion dollar has already been spent on purchasing land. It would fund investments through debt and internal accruals.
The company, having presence in 47 cities and 17 states, has already started the construction and development work on 66 million sf ft of area, he said, adding that the average construction cost was estimated at Rs 1,115 per sq ft.
On the total existing land bank of 153 million sq ft, Parsvanth would develop as many as 32 residential projects, 22 commercial, 18 integrated townships, 17 hotels, 6 related to Delhi Metro, 4 IT parks and as many SEZs.
Parsvnath would be developing about 2,400 rooms under various categories in 17 hotels at a cost of Rs 750 crore.
"We are in talks with global operators to manage our hotels," Jain said, adding that the final decision would be taken shortly.
Besides, it would develop 114 multiplex screens in its commercial projects and select metro malls.
Under the existing land bank, about 26 million sq ft would be utilised for four IT/ITeS SEZs, for which the company has got formal approvals. A new subsidiary has been formed for developing SEZs. The company plans to develop a total of 16 such zones.
Going forward, Jain said the company would add an aggregate saleable area of about 170 million sq ft by December for seven other SEZs for which in-principle approval has been received.
Besides, the company would continue to acquire projects in other verticals across the country in line with future strategy.
The company has posted a net profit of Rs 292 crore in fiscal 2006-07 with a compounded annual growth rate (CAGR) of 110 per cent. The turnover stood at 1,510 crore in last fiscal with a CAGR of 122 per cent.
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