New Delhi, Mar 13:
Realty firm Birla Estates expects sales revenue of around Rs 11,000 crore from its newly launched luxury housing project in south Mumbai and has already sold properties worth Rs 1,000 crore, its CEO K T Jithendran said.
Birla Estates Pvt Ltd, which is a wholly-owned subsidiary of BK Birla group’s Century Textiles and Industries Ltd (CTIL), had in December announced an investment of Rs 5,500 crore develop the luxury housing project at Worli in south Mumbai.
The project ‘Birla Niyaara’ is spread over 14 acres comprising around 1,200 housing units.
In an interview with PTI, Birla Estates Chief Executive Officer (CEO) Jithendran said: “We have got a very good response from customers in this flagship luxury residential project. We have already sold more than 150 units worth over Rs 1,000 crore.”
The company has launched one 75-storey tower comprising 400 units in a price range of Rs 4-12 crore. The ticket size of some penthouses and larger flats are higher.
Jithendran attributed the robust sales bookings to various factors, including brand, product design, location and focus on sustainability.
The construction work at the site has started and it will take around 7-8 years to complete the entire project.
The company plans to develop 2.5 million square feet of housing, one million square feet of office buildings and 1,00,000 square feet of high street retail in various phases of this 14-acre project.
“We are expecting a sales revenue of Rs 10,000-11,000 crore from this project,” he said.
The grade-A office space will not be sold and given on lease to corporates.
The investment will be funded through advances from customers against sales and internal accruals.
“Century Mills has been one of Mumbai’s iconic landmarks and an important part of the Birla group’s history. Our intent is to create a new landmark in the Mumbai skyline with Birla Niyaara,” Jithendran had said in December.
The project, conceptualised and designed by Foster and Partners, is a LEED pre-certified platinum residential project.
Birla Estates has around 30 acres of land in Worli where it plans to have an integrated development.
The company is currently developing housing projects in Mumbai, Gurugram and Bengaluru.
On future expansion, Jithendran said the company is looking for more projects, either through joint development agreements with land owners or outright acquisition of land parcels.
Birla Estates will use a capital efficient, asset light model to source joint ventures, ideally in Mumbai Metropolitan Region (MMR), Pune, Bengaluru and NCR — which account for around 70 per cent of the pan-India residential market.
The company has a commercial portfolio of two grade-A buildings located in Worli with around 6 lakh square feet of leasable area.
According to real estate consultant PropTiger.Com, housing sales across eight major cities increased 13 per cent in 2021 to 2,05,936 units from 1,82,639 units in the previous year.
Housing brokerage firm Anarock reported that sales across top seven cities rose 71 per cent year-on-year in 2021 to 2,36,530 units. (PTI)
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