DB Realty, the country’s third-largest realtor by market capitalisation, will spend Rs 1,000 crore on acquiring new redevelopment projects.

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“We expect a cash outflow of around Rs 1,000 crore,” Shahid Balwa, managing director of the company said during an analyst call.

DB Realty plans to add 44 million square feet (msf) of new inventory in its portfolio.

The company is in the final stages of securing the rights to redevelop the Abhyudayanagar property at Kalachowkie, a 3 msf land parcel belonging to the Maharashtra Housing and Area Development Authority. It has 60% stake in the project, while Shreepati Group holds the rest.

It has also secured a part-slum, part-open private land in Premnagar, Goregaon, which will add 6 msf to its land bank.

Further, it has acquired one-third share in Mahal Pictures Pvt Ltd to develop a 58 acre land in Jogeshwari with a total built-up area of 5 msf.

It is in the final stages of acquiring a 106 acre property at a prime location in Thane, which would add 15 msf to its portfolio.

It also plans to develop an urban renewal project of 6 msf. Added to all this, DB Realty will undertake new launches in its Orchid Town project in Pune with 10 msf. The construction would take off in Q3-Q4FY11 with an average realisation of Rs3,200-3,500 per sq ft.

It will launch its MIG Colony project in Bandra during the same time with an area of 1 msf at an average price realisation of Rs 20,000 per sq ft.

It would also start construction of its Orchid Enclave Phase III at Mumbai Central with 0.5 msf at an expected average realisation of Rs 15,000-17,000 per sq ft.

DB Realty will also launch its Turfview project’s C and D towers, which would be launched in Q4FY11. The project’s first phase was sold for Rs 50,000-60,000 per sq ft, whereas now it is expecting an average realisation of Rs 40,000 per sq ft.

The company will spend Rs 800 crore on its recent acquisition of the 57 acre Bandra Government Colony project. It will use its transfer of development rights (TDR) portion of 3.2 msf from its Mahul project for this one.

“As various consulates are shifting to Bandra Kurla Complex, we will market the product as a diplomatic conclave,” said Balwa.The cost of land acquisition for the company is Rs 3,000-4,000 per sq ft on an average, said Balwa.

Its largest standalone project, of 18 msf close to Mira Road station, is still awaiting regulatory approvals. “We are expecting the approvals in another three months,” said Balwa.

The company expects to generate 9 msf of TDR in the next three years and 0.5 msf in FY11 through its Hillview project.

The company is going to award 14 msf to either Man Infra or L&T for its project construction.