By Accommodation Times News Services
The Shapoorji Pallonji Group enters into affordable housing segment with a new brand Joyville, under this name the company will construct affordable homes only. In the first phase the company plans to build 20 million sq ft of residential affordable space with around 20,000 units in the next seven years across six cities Mumbai, NCR, Ahmedabad, Kolkatta, Pune and Chennai.
The plan will focus on both Tier-I and Tier-II cities, with project sizes in the range of 1.2 mn sq ft to five million sq ft and the first phase will include about 20,000 affordable residential housing units, according to a company statement.
The company decided to launch the new brand following the high demand for affordable homes and contributing for the Prime Minister led ‘Housing for All Mission’.
For the new venture company has joined hands with Standard Chartered Private Equity, International Finance Corporation (IFC) an arm of the World Bank and the Asian Development Bank (ADB) for investing in the segment. The partnership will invest about $250 million, which will be used primarily for buying land, to meet project approval and initial infrastructure expenses.
“We have been present in the luxury segment as well as creating middle income group housing stock. But with the government focusing on creating affordable housing, we think this is the right time to get into the market in a big way,” Jai Mavani, Executive Director, Shapoorji Pallonji, said.
Standard Chartered Private Equity, IFC and the Asian Development Bank will together hold 70 per cent stake in the joint venture, while the rest will be with Shapoorji Pallonji Group, Mavani said.
The company has around nine mn square feet of land and will acquire another 20 mn sq ft in the next one and a half years, Joyville Shapoorji Business Head Venkatesh Gopalkrishnan said.
The company will launch its first project in Howrah, Kolkata, on Friday. In March, it will launch its second project on the outskirts of Mumbai in Virar.
“Our intent is to first enter major metros. After Kolkata and Mumbai Metropolitan Region, we will launch a project in Pune, followed by Chennai, Noida and Bengaluru. In the next phase of development, we are looking at Tier-II cities like Durgapur, Ahmedabad, Nagpur, among others,” Gopalkrishnan said. The 2-3 BHK apartments will be priced between Rs 20 lakh and Rs 30 lakh, depending on locations, he said.
The real estate division of the company is engaged in the development of luxury and middle income housing. “We are eyeing nearly 50 per cent of revenue from the affordable housing segment in the next four to five years,” Gopalkrishnan added.
“Affordable housing is distinct from the Indian high-end real estate market, in terms of its market dynamics. We see a huge demand and need across the country for affordable homes,” he added.