Sobha to spend ₹3,000 cr in apartments, villa construction

Sobha Ltd plans to spend ₹3,000 crore in construction cost to build 7-10 million square feet in four to six quarters.

“Some projects are our own and few are joint development. Land was acquired long ago, but construction cost is ₹3,000 crore,” J C Sharma, Vice-Chairman and Managing Director, told BusinessLine .

“Constructions are for apartments and villa development. Launches are spread across Bengaluru, Kochi, Pune, Chennai, Thrissur, Kozhikode and Gurugram,” he added.

In Bengaluru, the company is launching a project called Pristine. According to Sharma, “Pristine is a residential project in Jakkur Bengaluru, which offers 2/3/4 BHK luxury apartments, row houses and penthouses.”

The company is planning at least two more project launches this quarter itself. “There are other three to four projects at the various stages which should be launched as we move forward. So, we have created good visibility as far as our new launches are concerned,” said Sharma.

Coming to the real estate inventory, Sharma said: “We hold at the close of Q2 FY2017-18 unsold inventory and completed projects were only 250,000 square feet, of which about 70,000 square feet of inventory is plotted development. We have total area, which are released for sale in ongoing projects, at 14.75 million square feet, of which we have already sold 10.71 million square feet until September 30 and unsold area of 4.04 million. The unsold area accounted only for 27 per cent of the area released for sale, and we consider this to be adequate in this market.”

During the second quarter, revenues came in at ₹658 crore, which was higher 19 per cent year-on-year. “Of this, real estate contributed ₹493 crore, which is about 75 per cent of the top line, and the contracts and the manufacturing business contributed the remaining ₹153 crore.”

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