Shapoorji Pallonji debuts affordable housing with Joyville Homes

2024-04-25 08:29:28 Business

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Shapoorji Pallonji debuts affordable housing with Joyville Homes

Group to build 20 mn sq ft residential space in next 6-7 years across major cities

The Shapoorji Pallonji Group has forayed into affordable housing segment with the launch of its new brand, Joyville, under which it will build 20 million sq ft of affordable residential space in the next 6-7 years across all major cities.

In the first phase of the plan, these projects will be developed across Mumbai, Pune, National Capital Region, Chennai, Kolkata, Bengaluru and Ahmedabad.

The business plan will focus on both tier-1 and tier-2 cities with project sizes in the range of 1.2 million to 5 million sq ft and the first phase will include around 20,000 affordable residential housing units, according to a company statement.

The company has joined hands with Standard Chartered Private Equity, International Finance Corporation (IFC) -? an arm of the World Bank -? and the Asian Development Bank (ADB) to invest in the segment.

The partnership will invest about $ 250 million, which will be used primarily for buying land, to meet project approval and initial infrastructure expenses. Besides, the company is likely to raise up to $500 million through debt, according to an agency report.

"We have been present in the luxury segment as well as creating middle income group housing stock.But with the government focusing on creating affordable housing, we think this is the right time to get into the market in a big way," Jai Mavani, Executive Director, Shapoorji Pallonji said.

Standard Chartered Private Equity, IFC and the Asian Development Bank will together hold 70% stake in the joint venture, while the rest will be with Shapoorji Pallonji Group, Mavani said.

The company has around 9 million square feet of land available and will acquire another 20 million square feet in the next one-and-a-half years, Joyville Shapoorji Business Head Venkatesh Gopalkrishnan said.

The company will launch its first project in Howrah, Kolkata on Friday. In March, it will launch its second project on the outskirts of Mumbai in Virar.

"Our intent is to first enter major metros. After Kolkata and Mumbai Metropolitan Region, we will launch a project in Pune followed by Chennai, Noida and Bengaluru.In the next phase of development, we are looking at tier-II cities like Durgapur, Ahmedabad, Nagpur, Coimbatore among others," Gopalkrishnan said.

In the first phase, the company plans to create 20,000 affordable residential housing units in 6-7 years, which will be priced between Rs 20-30 lakh for 2-3 BHK apartments, depending on the locations, he said.

The real estate division of the company is engaged in the development of luxury and middle income housing. "We are eyeing nearly 50% of revenue from the affordable housing segment in the next 4-5 years," Gopalkrishnan added.

?Affordable housing is distinct from the Indian high-end real estate market, in terms of its market dynamics. We see a huge demand and need across the country for affordable homes,? he added.

The projects will be located in suburban locations of preselected cities, which have clear growth potential, and are carefully selected based on a well-defined geographic strategy, with the first project located in Howrah, Kolkata. These projects would also include amenities such as clubhouses, sports-facilities for kids, recreation areas, parks and open spaces, and health-care facilities, where applicable.

Source: http://bit.ly/20svzRi