Puravankara secures lucrative Mumbai redevelopment projects, eyes Rs 1,500 crore revenue

Leading real estate firm Puravankara Ltd has successfully secured the redevelopment rights for two housing societies in Mumbai, projecting a substantial revenue potential of Rs 1,500 crore.

In an official statement, Puravankara, headquartered in Bengaluru, announced its latest achievement, detailing the acquisition of residential redevelopment rights for two housing societies in the western suburbs of Mumbai. The flagship project, located in Andheri West and spanning 3 acres, holds an estimated development potential of 5.8 lakh square feet of carpet area. Of this, approximately 3.65 lakh square feet will be available for sale, with a potential Gross Development Value (GDV) of Rs 1,500 crore over the project's lifecycle.

Abhishek Kapoor, Group CEO of Puravankara Ltd, expressed the significance of this milestone, marking the company's strategic entry into the redevelopment segment. Kapoor stated, "This strategic move also underscores our commitment to expanding our footprint in Mumbai's thriving real estate market."

Despite posting a consolidated net loss of Rs 11.22 crore in the September quarter, Puravankara demonstrated a robust performance in its sales bookings, registering an over two-fold jump to Rs 1,600 crore. This represents a noteworthy improvement compared to the net loss of Rs 17.22 crore recorded in the same period last year.

The company's total income surged to Rs 381.57 crore in the July-September period of the current fiscal year, up from Rs 252.85 crore in the corresponding period of the previous year.

On the operational front, Puravankara reported a doubling of sales bookings to Rs 1,600 crore in the second quarter of this fiscal year. Sales volume witnessed an 89 per cent annual increase, reaching 2.01 million square feet during the July-September period. Additionally, sales realization grew by 7 per cent, reaching Rs 7,947 per square foot.

While Puravankara shares experienced a marginal 0.62 per cent decline, trading at Rs 159.45 on BSE in the late morning session, the company remains optimistic about its strategic foray into Mumbai's redevelopment market. The successful acquisition of these projects positions Puravankara for substantial revenue growth in the coming years.