Sattva Group to Revolutionize Indian Realty with REIT and IPO Plans
Sattva Group, a Bengaluru-based realty player, is gearing up to float a REIT for its commercial assets and plans to invest Rs 12,000-14,000 crore in the next 2-3 years.
Real EstateReitIpoSattva GroupSimpliworkReal Estate MumbaiJun 25, 2024
The company has ambitious plans to invest Rs 12,000-14,000 crore in the next 2-3 years, which will be funded through a combination of equity, debt, and internal accruals like sales. The investment will be allocated across commercial office, residential, and hotel projects in existing cities like Bengaluru, Pune, and Hyderabad, as well as new markets, Chennai and Mumbai.
Sattva and Blackstone have partnered to develop a staggering 32 million square feet, with 18 million square feet already completed and the remaining under development. The company aims to nearly double its residential sales from Rs 3,500 crore in 2023-24 to Rs 6,000-6,500 crore in FY25. On the commercial office front, it is expecting a 20% growth in annuity income from Rs 2,000 crore in FY24.
In addition to its REIT plans, Sattva is also exploring an Initial Public Offering (IPO) for its co-working venture, Simpliwork. Founded in 2018 by Kunal Walia, Sattva currently holds a 55% stake in the company. Simpliwork has a significant presence in 9 cities, with a footprint of 3.5 million square feet, which is expected to increase to 4 million square feet by the end of this fiscal year.
Sattva Group's aggressive expansion plans, including its REIT and IPO initiatives, are set to revolutionize the Indian real estate market, providing investors with new opportunities and further cementing the company's position as a leading player in the industry.
Information
Sattva Group is a Bengaluru-based real estate developer that has been operating in India for over two decades. The company has a diverse portfolio of residential, commercial, and hotel projects across multiple cities.
Blackstone is a leading global investment firm that has been active in India's real estate market for several years.
Simpliwork is a co-working venture founded in 2018 by Kunal Walia, with Sattva Group holding a 55% stake in the company.
Frequently Asked Questions
What is Sattva Group's investment plan for the next 2-3 years?
Sattva Group plans to invest Rs 12,000-14,000 crore in the next 2-3 years, which will be funded through a combination of equity, debt, and internal accruals like sales.
What is the current portfolio of Sattva Group and Blackstone?
Sattva Group and Blackstone have partnered to develop a joint portfolio spanning 32 million square feet, with 14 million square feet under various stages of planning and development.
What is Simpliwork, and what is its current footprint?
Simpliwork is a co-working venture founded in 2018 by Kunal Walia, with Sattva Group holding a 55% stake in the company. It has a presence in 9 cities, with a footprint of 3.5 million square feet.
What is the expected growth in annuity income for Sattva Group's commercial office segment?
Sattva Group is expecting a 20% growth in annuity income from Rs 2,000 crore in FY24.
When can we expect greater clarity on the IPO timeline for Simpliwork?
Internal discussions are ongoing, and there would be greater clarity on the Initial Public Offering (IPO) timeline within 2-3 months.
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