Arihant Foundations intends to invest Rs. 650 crore in real estate and expand into Bengaluru

By Bricksnwall | 2024-05-13

As part of its Bengaluru plans, the company expects to invest Rs 150 crore in Grade A office buildings.

Arihant Foundations and Housing, a listed real estate developer based in Chennai, wants to invest Rs 650 crore in the city and Bengaluru by FY25, according to managing director Kamal Lunawath.

It will invest Rs 150 crore to create Grade A office spaces in Bengaluru, with the remainder going into Chennai real estate.

"We are looking at projects close to Bengaluru's core business district, the northern section, and Whitefield's eastern IT corridor. In the first half of FY25, we hope to close some business transactions in the city. Additionally, we are looking for land lots for the residential section," Lunawath stated.

Currently, the company plans to create approximately 0.5 million square feet (MSF) of commercial space and 1 million square feet of residential space in both locations by FY25. Arihant has developed 20 million square feet in Chennai, including 4 million square feet of office space.

"Last fiscal year, our top line was Rs 84 crore. We expect to expand by at least 15-20 percent in FY25. While Chennai has been our major market, we plan to expand into Bengaluru by developing freestanding flagship commercial office spaces of at least 0.5 million square feet," he said.

Recently, the company struck an agreement with Equitas Small Finance Bank to establish its corporate headquarters in Anna Salai, Chennai. The project covers around 0.2 million square feet and has a transaction value of more than Rs 300 crore.

Lunawath stated that the company's residential division consists primarily of premium luxury residences priced between Rs 2 crore and Rs 15 crore. "However, we are currently working on a project in Chennai in the mid-segment with ticket sizes starting at Rs 1.5 crore.  " All further developments during FY25 will be in the luxury sector," Lunawath said.

Arihant has also partnered with Ashiana Housing to create senior living projects in Chennai, with the goal of developing at least 0.5 million square feet of elder-care housing by FY25. The company intends to collaborate on the development of a senior living complex on East Coast Road in Chennai.

Chennai's moving real estate.

Although the property market in Chennai has traditionally been cautious and dominated by end users, Lunawath observed that more people are now considering Tamil Nadu as an investment possibility.

"Today, we see more homeowners wanting to invest in premium luxury flats in Chennai for upwards of Rs 2-3 crore. "We expect the growth momentum to continue in FY25," he stated.

According to data issued by the Reserve Bank of India, Chennai experienced the biggest gain in the Housing Price Index in the third quarter of FY24, growing 8.41% over the previous year.

According to research by real estate firm Colliers India, Chennai had the highest-ever office leasing in 2023, with 10.5 million square feet of gross absorption. Chennai makes its debut in the top three, joining Bengaluru and Delhi-NCR.

Source: Money Control