Sattva Group Expands into Data Centres and Mumbai Real Estate

Bengaluru-based Sattva Group is exploring opportunities in the data centre sector while expanding its Mumbai portfolio through a series of redevelopment-led projects, a senior executive said.

We are also exploring opportunities in the data centre space, where our plans are currently under development, Adrija Agarwal, President of Sattva Group and Founder of Sattva Ventures, told Business Standard.

The company, which recently entered Mumbai with its Rs 5,500-crore residential project Sattva Sumera in Parel with a development potential of 2 million square feet (msf), is preparing to launch a mixed-use project in Powai in the coming months. It is also developing projects in Bandra-Kurla Complex (BKC) and Vile Parle, while Goregaon and Borivali are part of its pipeline for next year.

Mumbai presents significant redevelopment opportunities across multiple micro-markets. For us, entering Mumbai gave us a strong opportunity as the housing stock has a huge need for redevelopment, she said.

Whether in South Mumbai or the suburbs, the availability of land is inherently constrained. As a result, redevelopment and strategic acquisitions play an important role in unlocking new development opportunities.

Agarwal said the company's strategy is centred on upgrading housing stock through redevelopment while focusing on design and liveability. The company believes recent infrastructure projects are improving accessibility across the city.

Our approach to Mumbai is that while infrastructure is changing, whether through the Coastal Road, the Trans Harbour Link, or East-West connectivity, the housing stock still needs to be upgraded, Agarwal said.

Mumbai is also an important market in Sattva's national expansion plans.

Mumbai is an important market for us, and establishing a presence here is a key part of our long-term growth plans. Mumbai is the financial capital of India, and for Sattva, becoming a national player required a presence in the city, Agarwal added.

While acknowledging the city's high development costs, she said the company remains selective while evaluating opportunities.

It is an expensive market. Approval costs and FSI are expensive, but apartment prices are also correspondingly higher. We remain disciplined in our approach to project selection and pursue opportunities that meet our financial, operational, and strategic objectives, Agarwal said.

Around 80 per cent of the company's Mumbai pipeline is residential. It is planning a commercial project in BKC.

On the broader housing market, Agarwal said the long-term demand drivers remain intact despite periodic fluctuations.

India is currently at a structural inflection point. The political environment is supportive, the economy is deepening, and there is a strong premiumisation trend, she said.

Apart from residential and commercial real estate, Sattva is also expanding into hospitality. It expects a 340-key Taj hotel to launch in Bengaluru in the first quarter of next year.

Additionally, the group has so far delivered 80 msf of developments and has another 100 msf in various stages of planning and development across markets.