Provident Housing eyes 25-30% sales growth
Housing major sees sound demand for housing properties across cities
image for illustrative purpose
Scaling Up Projects
- Subsidiary of Puravankara is developing 5.8 mn sq ft of projects
- Company will stick to the current 9 cities for property development
- It may look at public listing as the developer scales up
Bengaluru: Provident Housing, a fully-owned subsidiary of Puravankara Group, is looking at 25-30 per cent growth in its sales in the current financial year and beyond as the housing major sees sound demand for housing properties across cities.
The developer, which operates in housing properties ranging from Rs 45 lakh to Rs 1.2 crore, is developing around 5.8 million sq ft of space in this financial year. “We are focussed on developing large township projects where 1,00 units or above can be accommodated. Such development will give us the economies of scale along with putting us in a good stead of following various sustainable practices,” Chief Executive Officer of Provident Housing, Mallanna Sasalu said in a press conference on Wednesday. “We are not looking at expanding to other cities than the existing nine cities. Real estate is a highly localised business with each region having its own requirement. We are developing around 5,500 units of spanning around 5.8 million sq ft currently,” he added.
Provident Housing is the wholly-owned subsidiary of Bengaluru-headquartered listed firm Puravankara Ltd. While Puravankara’s other unit ‘Purva’ is into high-end and luxury housing segment, Provident is into mid-level housing apart from entry-level luxury housing projects.
The company is currently executing Rs 3,800 crore worth projects in various cities. Replying to possibility of going public, Sasalu said that the company may look at such option in the coming years. “We are operating as an independent company with our own board and management under the umbrella of Puravankara. As we grow, if the board feels, public listing through spinning off will add value, then we will consider it. For now, our focus is to grow the business sustainably in our targeted segment,” Sasalu said. According to reports, the company is in talks with financial institutions to raise around Rs 1,000 crore for funding its business growth.
“Fund raising is a continuous process as we execute the housing projects. I can’t give any specifics, but we are in constant talks with financial institutions for raising capital. As far as funding by external investors are concerned, this will vary from project to project,” Sasalu said.
