The 150-year-old real estate, construction and development company, Shapoorji Pallonji, is likely to make an investment of around R6,000 crore and earn revenues of over R9,000 crore from its affordable housing business launched under the brand Joyville, over the next seven years.
The 150-year-old real estate, construction and development company, Shapoorji Pallonji, is likely to make an investment of around Rs 6,000 crore and earn revenues of over Rs 9,000 crore from its affordable housing business launched under the brand Joyville, over the next seven years.
The company in July, partnered with Standard Chartered Private Equity, IFC, a member of the World Bank Group, and the Asian Development Bank, to form a joint venture with an equity capital commitment of $200 million (or Rs 1,250 crore), focusing on development of affordable housing projects in India. The company may look to raise another $50 million, as the need arises, a senior official told FE. As part of the commitment Shapoorji Pallonji group plans to create 20,000 affordable homes in India.
Kekoo Colah, executive director, Shapoorji Pallonji (Real Estate) said that the company will be utilising the capital for land acquisition and pre-development works, while the requirement towards construction costs will be met through customer advances and some bank funding. “We may at a future date look to raise another $50 million,” Colah said without giving details or timelines for the same.
Colah said that the Joyville platform will strictly adhere to the plans of providing affordable housing in the price bracket of Rs 20 lakhs to Rs 50 lakhs, and there will be no deviation mid-way.
“Our selling prices will be in the range of Rs 3,500 to Rs 5,500 per sq ft, and may vary a little with cities like Mumbai. However, even if the prices around the area are going up, there is no way that we will start increasing the prices. Yes, there would be some price increases due to inflation and over the life of the project, but by and large, we will stick to a pricing”.
Through Joyville, Shapoorji plans to provide houses in the ticket price ranging from Rs 20 lakhs to Rs 50 lakhs per unit.
In Mumbai, however, this will range between Rs 30 lakhs and Rs 65 lakhs. The units will be available in 500-550 square feet in one BHK category and the larger 2 and 3 BHKs will be available in the 1,000-1,100 sq ft sizes.
The company’s first project under Joyville brand will be launched in Howrah, near Kolkata in West Bengal by the end of January, while in Mumbai Metropolitan Region, the company will launch a project in Virar by March. Another project in the IT corridor of Pune in Hinjewadi is expected to be launched in December.
The project sizes will range from 1.2 million to 5 million sq ft, and the company plans to have 8-10 projects spread across cities like Mumbai, Pune, NCR, Chennai, Kolkata, Bengaluru and Ahmedabad. Venkatesh Gopalkrishnan, (business head), Joyville Shapoorji said, “In the first phase of development, which will take about seven years to complete, we are targeting 20 million sq.ft development”.