Shapoorji Pallonji to spend Rs 400 cr on acquiring land

Shapoorji Pallonji's housing division Joyville to spend Rs 400 crore on land acquisition by March end

Joyville, which is a Rs 1,240 crore platform established by Shapoorji Pallonji, ADB, IFC and Actis, has so far launched six housing projects in four major cities

Representative Image. Credit: iStock Photo

Business conglomerate Shapoorji Pallonji's housing platform Joyville plans to invest around Rs 400 crore on acquisition of 3-4 land parcels in Mumbai and Pune by the end of this fiscal to expand its presence amid recovery in demand of residential properties, a senior company official said.

Joyville, which is a Rs 1,240 crore platform established by Shapoorji Pallonji, ADB, IFC and Actis, has so far launched six housing projects in four major cities and is now looking for new land parcels for future development.

In an interview with PTI, Joyville Shapoorji Housing Managing Director Sriram Mahadevan said the platform has around Rs 400 crore balance fund, which will be committed before March 31 on the acquisition of new land for development.

"We are on the verge of investing balance fund. We are looking for 3-4 land parcels in Mumbai and Pune. We are open for both outright purchases and joint development agreements with the landowners," he told PTI.

Read | Shapoorji Pallonji Real Estate to invest Rs 4,000 crore on new project in Pune

Mahadevan said the target is to sign agreements and commit investment by March-end.

On the market conditions, he pointed out that housing sales were hit badly during the April-June quarter of this fiscal year due to the Covid-19 pandemic, but demand has improved significantly thereafter.

"There is a clear cut shift of customers towards quality. They are relying more on brands. Millennials are looking at residential properties for buying. There is also a renewed interest of homeownership," Mahadevan said.

Asked about sales performance in this fiscal, he highlighted that the Joyville platform sold residential properties worth nearly Rs 600 crore during the October-December period of this fiscal as against Rs 150 crore in the second quarter and mere Rs 25 crore in the first quarter that saw the strictest lockdown to control the coronavirus disease.

Also Read | Shapoorji Pallonji's platform Joyville sells 800 housing units in Pune for around Rs 400 crore

So far, six housing projects have been launched under this platform -- three in Pune and one each in Mumbai, Kolkata and Gurugram.

"We have launched around 5,200 units so far in these six projects. 75-80 per cent of inventories are already sold out. There is development potential for about 4,000 units more in these six projects," Mahadevan informed.

During this pandemic, Joyville has launched two new projects in Pune and also the third phase of its housing project in Gurugram, Haryana.

Last month, the company launched a new housing project, "Sensorium" in Hinjawadi, West Pune, spread over 10 acres and comprising over 1,100 flats, with an investment of about Rs 700 crore.

Before that, in October, a 21-acre housing project, 'Joyville Hadapsar Annexe' was launched in East Pune, comprising more than 2,700 units.

Joyville will invest around Rs 400 crore to develop the third phase of its housing project, comprising over 400 units, in Gurugram.

The platform has started the handover process of Phase 1 at Joyville Howrah (near Kolkata) as per the timeline and is planning to begin the handover process of Phase 1 at Joyville Virar (near Mumbai). The construction works are underway in the other housing projects.

Apart from this platform, Shapoorji Pallonji group firm Shapoorji Pallonji Real Estate has a development pipeline of over 80 million sq ft.

Last week, Shapoorji Pallonji Real Estate announced an investment of around Rs 4,000 crore to develop 148-acre mixed-use project "VANAHA" near Bavdhan, West Pune.