Bengaluru-based real estate company, Ferns Estates and Developers, which has entered the luxury hospitality business, is establishing properties that are close to nature and easy to reach.
The company estimates revenue of Rs 363 crore in five years from the hospitality segment alone, according to Errol Fernandes, CMD, Ferns Estates and Developers.
“We started our first resort in 2021 in Sakleshpur – a luxury property spread over 100 acres, with an investment of Rs 160 crore. At present, there are 126 keys and we plan to expand the resort by adding another 76 keys. The estimated investment for this expansion is around Rs 50 crore,” said Fernandes.
Going forward, two more resorts are being set up in Coorg, which is spread over 25 acres of coffee plantation, with an investment of Rs 60 crore, and another in Chikballapur, spread over 7 acres. “The best part is that all these locations are within a day’s drive from Bengaluru, which was one of the goals in establishing them,” he added.
The company is also acquiring a resort in Goa. “In Goa, we have acquired a 100-key property for Rs 150 crore. It is on the verge of being completed. We should be able to start operations in September 2023,” Fernandes said. The property would be funded with debt to the tune of about Rs 100 crore, and Rs 50 crore from internal accruals.
The company, which has been in the real estate business for the last 34 years, has built gated communities, apartments, and office spaces in Bengaluru.
“For our real estate arm, we don’t intend to venture outside Karnataka; however, we plan on going to tier-two cities such as Mysore, Mangaluru, and Hubli Dharwad. Initially, we plan to set up gated communities and then get into apartments later. As of now, we are scouting for land. We are developing another vertical called branded plots in Sakleshpur,” said Fernandes.
In the case of gated communities, it expects to grow by 20 per cent every year, and typically do around 5 lakh sq feet of sales annually. Similarly, it sells around one lakh of sq feet of apartment space annually and expects to grow by 20 per cent, said the CMD.
Ferns Estates and Developers expects to end FY23 with a revenue turnover of Rs 185 crore, of which Rs 40 crore would come from its hospitality arm.