Bengaluru-based property developer, Century Real Estate Holdings, which owns the largest land parcel across Bengaluru, is looking at monetising a portion of its land to grow its business.
Currently, the company holds an estimated 3,000 acres of land parcel in and around Bengaluru, mostly in northern parts of the city. It is looking at monetising around 500 acres of land in the next 4-5 years, a top company official said.
“We have three business verticals -- plotted development, affordable (Rs 50 lakh) and mid-market (up to Rs 80 lakh) homes and commercial -- and we are looking at developing projects in all these verticals. We are planning to develop 500 acres in the next five years,” P Ravindra Pai, Managing Director, Century Real Estate Holdings Pvt Ltd told DH.
The company is also making a major foray into the commercial real estate segment for the first time with a new project spanning 2.5 million sq feet at Hebbal, an upcoming micro-market in Bengaluru.
“We have so far developed small projects with 1 lakh sq feet area. We now have a plan for 7 million sq feet of commercial space development over the next 4-5 years between Hebbal and Yelahanka in north Bengaluru. This includes office space, F&B retail, etc. After these projects are completed, we will look at developing another 3 million sq feet in the same area,” Pai said.
Century Real Estate has earmarked a 50-acre plot for development of around 800 residential plots near Devanahalli.
The project is currently awaiting regulatory approvals and is likely to be launched by June next year, he said.
The company has so far developed and delivered 3,000 plots spread across 600 acres in Bengaluru.
The company is currently developing two affordable apartment complexes and has just launched the third project - Century Horizon at Jakkur spread across 3 lakh sq feet area. Of this, 1 lakh sq feet area will be commercial space, he said.
To fund its new projects, Century is looking at raising close to Rs 1,000 crore construction finance. The company is in advanced talks with some real estate private equity funds including Godrej Fund Management.
While Pai declined to comment on the fundraise from Godrej, market analysts tracking the sector believe that the company is likely to raise in excess of Rs 800 crore from them. The deal is likely to be concluded in the next fortnight.