Sattva Group Eyes Diversification with Rs 12,000-14,000 Crore Investment
Real estate developer Sattva Group plans to invest Rs 12,000-14,000 crore in diversification over the next three years, exploring new markets and segments.
Real EstateDiversificationSattva GroupBlackstoneCommercial PropertiesResidential ProjectsReal Estate PuneJun 25, 2024
Sattva Group is currently constructing 23 million square feet of real estate properties in various sectors, with plans for an additional 65 million sq ft across eight cities, including Bengaluru and Hyderabad. The company has about 32 million sq ft of real estate assets, including 20 million sq ft of completed assets in Hyderabad and Bengaluru in partnership with private equity firm Blackstone.
In 2017, Blackstone and Salarpuria Sattva Group established an alliance, resulting in the acquisition and management of prime assets such as Knowledge City, Knowledge Capital, Image Towers, and Knowledge Park in partnership with the Bangalore-based developer. The collaboration expanded to include the acquisition of Bengaluru's Global Tech Village in September 2020.
Over the past seven months, the company has leased about 4.5 million sq ft of space, indicating a notable resurgence in corporate interest. Anticipating a 25% growth in rental income by FY25, Blackstone also aims to double its residential sales to Rs 6,500 crore.
Sattva Group is also exploring listing its co-living and co-working platforms within the next two years. It is also exploring scaling up its co-living business from 15,000 to 50,000 beds and intends to introduce a proptech platform. Further, it plans to expand its flexible office arm to 4.8 million sq ft.
The Bengaluru-based company is planning to venture into new markets such as Mumbai and Chennai with both residential and commercial properties. It has secured land in Chennai for a 4.5 million sq ft office project in a Knowledge property. Discussions regarding a project in Mumbai are ongoing and expected to close shortly. Additionally, the company aims to launch a project in the latter half of 2024-25, spanning approximately 1.3 million sq ft. There are also plans to acquire land for an additional 1.5 million sq ft in this sector.
Information
Sattva Group is a leading real estate developer with a strong focus on residential and commercial properties. The company operates across 11 business verticals, with a total of 88 million sq ft of space in various planning and development stages.
Blackstone is a private equity firm that has partnered with Sattva Group to acquire and manage prime assets.
Frequently Asked Questions
What is Sattva Group's investment plan over the next three years?
Sattva Group plans to invest Rs 12,000-14,000 crore in diversification over the next three years.
What is the funding structure for Sattva Group's initiative?
The funding for the initiative will be structured with a combination of equity, debt, and sales, with approximately 20% of the funding in equity and the remainder sourced from debt and sales proceeds.
What is the current portfolio of Sattva Group?
Sattva Group has about 32 million sq ft of real estate assets, including 20 million sq ft of completed assets in Hyderabad and Bengaluru in partnership with private equity firm Blackstone.
What are Sattva Group's plans for expansion?
Sattva Group is planning to venture into new markets such as Mumbai and Chennai with both residential and commercial properties, and aims to expand its flexible office arm to 4.8 million sq ft.
What is Sattva Group's approach to debt?
Sattva Group's approach to debt is highly prudent and disciplined, with a primary focus on commercial and residential projects.
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