The city-headquartered real estate company Century Real Estate is considering entering the affordable housing segment and planning to invest Rs 1,100 cr to develop 7,000 homes in the next five years.
The company is also looking to launch about 1,350 plots next year in two projects and expects a sales realisation of about Rs 600 cr, its managing director Ravindra Pai said. "We have more than 3,000 acres in Bengaluru and our aim is to monetise our land parcels at best price," Pai told .
Precisely, the company has plans afoot to start four affordable housing projects in Bengaluru in the coming year. Together these four projects will develop some 4.5 mln sqft of space divided into about 7,000 apartments. The projects would be executed in the next five years. The company already has huge land bank in the city which will be used for this purpose. Some 6,000 of these flats located in north Bengaluru will be sold at Rs 35-40 lakh.
Last week, Pai had announced plans to develop 7 mln sqft of commercial projects in Bengaluru over 6 years. He had also said that the company was in talks with private equity investors to raise Rs 1,000 cr. The company had earlier raised funds from Kotak, Piramal, JM Financial, Xander and others to develop projects.
In February next year, the company intends to start development of one mln sqft area involving construction cost of Rs 350 cr.
With the real estate sector facing multi-year slowdown particularly, housing, developers are focusing on office projects which are doing better and attracting huge investment from domestic as well as foreign funds.
Century Real Estate has so far completed about 15 projects comprising 3,000 apartments and 2,000 plots. It is currently developing 10 projects. The company was founded in 1973 as land aggregator and facilitator. Almost all the big developers in the city have at one of time have bought land from it. But, about a decade ago the company became a real estate developer and started executing development projects on its own.