Sattva Group targets 85 pc growth in housing sales to Rs 6,500 cr this fiscal: MD Bijay Agarwal

New Delhi, Jun 30 (PTI) Realty firm Sattva Group is bullish on India’s housing market and will launch many projects to achieve 85 per cent growth in sales of residential properties to around Rs 6,500 crore this fiscal, a top company official said.

In the 2023-24, Bengaluru-based Sattva Group achieved sales bookings of Rs 3,500 crore.

“We are very bullish on housing demand. We are targeting to achieve sales of Rs 6,000-6,500 crore this financial year,” Sattva Group MD Bijay Agarwal said.

He said the company would invest Rs 12,000-14,000 crore over the next three years to build housing, office and hotel projects.

The bulk of the investments would be to develop housing projects and office complexes.

Sattva Group is one of the leading real estate developers in India with a significant presence in South India.

It has completed 140 projects comprising 80 million square feet area in the last 30 years. Around 23 million square feet are under construction, and 65 million square feet are in the pipeline.

Agarwal noted that the demand for the residential segment has been very strong post-COVID pandemic, while the leasing activities in the office market are also back on track.

He said the company would enter the Mumbai housing market this year.

Shivam Agarwal, VP (Strategic Development) of Sattva Group, said the company is looking for growth opportunities across geography and different verticals of real estate.

In the residential segment, Shivam said Sattva Group will launch more than 13 million square feet of area in Bengaluru this fiscal.

In Hyderabad, it will launch more than 6 million square feet of housing units this fiscal.

“In Mumbai, we intend to launch a project in the latter half of FY2024-25 of approx 1.3 million sq ft,” said Shivam.

Furthermore, the company is looking to acquire land parcels for another 1.5 million sq ft in Mumbai.

The company’s MD highlighted that the group’s co-working and co-living joint ventures — Simpliwork Offices and Colive — have been performing well and expanding.

“We plan to list our coworking and coliving businesses on stock exchanges in the next 2-3 years by launching public issues,” Agarwal said.

Sattva Group has more than 50 per cent stake in Simpliwork and Colive.

When asked about its plan to launch Real Estate Investment Trust (REIT), Bijay said, “We are in the early stage of discussion with Blackstone”.

He did not give any timeline for the launch of the public issue of REIT to monetise the commercial assets developed jointly by Sattva Group and global investment firm Blackstone.

Sattva Group and Blackstone have a joint portfolio of around 32 million square feet, of which 18 million square feet are already completed.

There are four listed REITs in India, and out of that three are backed by rent-yielding office assets, while one REIT has a huge portfolio of shopping malls.

Adrija Agarwal, VP (Business Development) of Sattva Group, said the company has two hotels in Kolkata with around 620 keys.

The Group is developing Taj Luxury Resort in Bengaluru with 294 keys and 60 villas.

“We are looking to expand our hotel business. We are in talks for a few more deals,” said Adrija.

Sattva Group’s annuity income stood at around Rs 2,000 crore last fiscal and the company is expecting 20 per cent growth this fiscal.

Sattva Group has completed 80 million square feet area in three decades, out of this commercial segment is 45 million square feet and residential assets 35 million square feet.

In the commercial segment, Sattva Group has completed 20 million sq ft in Bengaluru, and another 5 million sq ft is under construction.

In Hyderabad, Sattva Group has completed 25 million sq ft of commercial space, and another 3 million sq ft is under construction in HITEC city.

Agarwal said the group will soon commence work on 4.5 million sq ft of office space in Chennai.

In Pune, 1 million sq ft of commercial space is under construction.