[GAGA REALTY] [JOINT VENTURE] [GAGA HOMES]
Real estate developer Sattva Group plans to invest Rs 12,000-14,000 crore in the next two-three years to diversify its portfolio and explore new markets. The company is also considering options such as fundraising and entering into platform deals across segments to fuel its growth, said its managing director Bijay Agarwal.“The funding for the initiative will be structured with a combination of equity, debt and sales. Approximately 20% of the funding will be in equity, while the remainder will be sourced from debt and sales proceeds,” he told ET. “Our approach to debt is highly prudent and disciplined. The company’s primary focus lies on commercial and residential projects, which form the bulk of our portfolio.” The company 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, he said.Sattva, which 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, has indicated that it is in preliminary discussions for a potential real estate investment trust.“Currently, we are still in the process of finalising the portfolio and actively working on it. The timeline for decision-making is flexible and contingent upon market conditions,” said Agarwal.Blackstone and Salarpuria Sattva Group established an alliance in 2017, 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, which holds the majority stake, is also currently 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,” said Agarwal. Currently, the company operates across 11 business verticals, with a strong focus on residential and commercial properties. Recently, it expanded its portfolio to include data centre warehousing and hospitality. It has a total of 88 million sq ft of space in various planning and development stages.
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