Puravankara aims to secure 20 million square feet of land by the end of the fiscal year

Real estate developer Puravankara aims to secure 20 million square feet of land by the end of the fiscal year, exploring outright purchases and redevelopment to boost growth, with plans to increase project launches in Mumbai, Bangalore, and Delhi-NCR, a senior executive told ET.

“To sustain an annual project launch pipeline of 40 million square feet, we are aggressively looking at adding new land parcels under different models,” said Abhishek Kapoor, Group CEO of Puravankara.

The firm has recently acquired a land parcel spanning 12.75 acres in the Patlipada locality in Thane's Ghodbunder Road. This is the third project to be added to the company’s development portfolio in the Mumbai Metropolitan Region (MMR).

The company’s total Gross Development Value (GDV) for the western region, including launched and planned projects, is expected to be around Rs 11,000 crore over the next 4–5 years.

“Currently, Bangalore is a major contributor to our portfolio, but going ahead, we aim to increase the western region's revenue contribution to 20% in 2024-25 from 9% in the last fiscal year and foray into the Delhi-NCR market too,” he said.

Puravankara is also seeking additional capital through existing AIFs, public markets, and platform-level deals to bolster its growth plans.

This year, it has raised over Rs 1,600 crore in the last six months from HDFC Capital Advisors and Piramal Capital to support land acquisition and expansion plans.

“Keeping in mind our robust growth plans, we may exercise all the funding options or go for one of the above to raise capital. We have already sold property worth RS 5900 crore with 90% of 7 million sq ft launched over the last year,” said Kapoor.

The total estimated surplus from the launch pipeline, ongoing, and completed projects stood at Rs 11,507 crore.

The firm is also targeting reducing its net debt further. Puravankara’s net debt stood at Rs 2,151 crore, with a net debt-to-equity ratio of 1.14 for Q4 FY24. The weighted average cost of debt was 11.59% as of March 31, 2024.

“Our debt will get repaid from the ongoing projects. Our debt per sq ft is Rs 874 and can go up to Rs 1000 per sq ft as the average realisation will also increase,” said Kapoor.

The Bangalore-based developer currently has around 31.67 million sq ft of land under development and plans to launch 14 million sq ft in the current financial year. The company's total land bank stood at 36 million square feet as of March 2024.