Real Estate

Sobha to explore new opportunities via joint development

Anil Urs Bengaluru | Updated on March 23, 2021

These models are less capital intensive and offer a better internal rate of return

Sobha Limited, a Bengaluru-based real-estate developer, is exploring new opportunities only through the joint development (JD) or through development management (DM) model. The company said these models are less capital intensive and offer a better internal rate of return (IRR).

Declining to share or reveal numbers, the company's spokesman told BusinessLine that “currently, we plan to monetise our existing land bank present across various cities”. In the process and as a result of it 14.75 million square feet of new launches are planned in the coming quarters,” he added.

Talking about the company's road map, he said, “We are continuing to perform considerably well, even during this pandemic period ,going through various stages of lockdown, demand-supply constraints etc. We continue to focus on our operations, to deliver the projects within the stipulated timelines while maintaining all safety and quality standards.”

He further added: “We are looking forward to further easing of the pandemic induced stress in the economy, which should result in further demand for owning quality homes for which we are prepared with our robust launch pipeline of 14.75 million square feet, which should be released to sale in the coming quarters.”

On the company's cash flow, the spokesman said, “Our efforts and consistent focus on cash flow management has given fruitful results in the recent quarters. Despite a tough operating environment, we have generated net operating cash flow of ₹182 crore and ₹404 crore during Q3-21 and 9M-21 respectively. Positive net cash flow of ₹75 crore and ₹104 crore generated during Q3-21 and 9M-21, respectively, stands testimony to the professional ways of running business that the company believes in.”

After the Covid-19 unlock phases the sector and company faced challenges. “As far as the sector is concerned, ever changing sentiments from the demand front is something we need to keep watching. The ongoing pandemic has taught all of us some valuable lessons. Change in inevitable and we have also changed to meet the time specific requirements of the industry and our customers. Adaptability is also a major challenge we all face, well managed by most of the players in the current normal of doing most of our businesses in digital format. So, overall we believe preparedness, process re-engineering, and skill and technological upgradation are the way forward to handle any challenges that may arise.”

“At our (company) level, Sobha being the foremost backward integrated company with a sound delivery track record of quality products across residential real estate and contractual projects. We are a professionally managed company with a robust launch pipeline and a clear path ahead, we see there are only good signs of recovery and revival post Pandemic,” he added.

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Published on March 23, 2021
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