Sobha Looks Forward For Slum Redevelopment

Sobha Developers, a Bangalore-based realty major focussed on residential space, is looking at diversifying its portfolio through slum redevelopment schemes and special economic zones (SEZs), retail and commercial projects.

Mr. Raghav Menon, Executive director, said that the company would build an SEZ in either Tamil Nadu or Kerala. He said, “We haven’t decided on the place yet. We will also enter retail and commercial project development”.

Mr. Menon said, Sobha is planning projects in Delhi, Hyderabad, Pune, Mysore, Kerala and Orissa. The Mysore project will kick off next month with an investment of hundred crore rupees.

In the next three years, the company has to pay Rs 660-crore loans taken for land acquisition. The developer has a land bank of 4,024 acre, most of which is in Bangalore.

Mr. Menon, however, denied that the company was facing liquidity crunch and said it was self-sufficient. He said, “We are not looking at private equity investment as of now. But we are looking for good projects for joint venture development”.

The executive director added that in the coming months, Sobha had planned investments of nearly Rs 200 crore into the projects.

About 33% of Sobha’s revenues come from its contractual business, under which it is developing 8.32 million square feet including IT parks commissioned by Bangalore-based software giant Infosys.

4 Comments

  1. Realty Rider
    Posted June 5, 2008 at 12:06 am | Permalink

    There is good news for all the homebuyers who wished to own a dream house of there own but couldn’t possess due to the skyrocketing property prices. If you are waiting for property prices to fall by the end of the year to buy your dream house in the city, you may be doing the right thing! Realty experts predict a 10-20% fall in residential prices in and around metros.There is respite ahead for people who want to invest in residential property in metros. According to experts, this segment of the market is set to witness a slide in prices soon. That’s because over five million sq ft of residential space is under construction currently in areas in and around Delhi, Mumbai, Chennai, and Bangalore. They say a majority of this supply will hit the realty market over the next 6-12 months. Since there are fewer takers for residential property in prime locations right now, it could force to bring down prices. In certain markets the reason is oversupply. In certain markets the size of the market is very small and the number of projects that have been announced, or which are being sold in the market are much more. Secondly, there is an absence of investors in the market, so it’s a purely end-user market. The stock markets have corrected, peoples’ perception that they have lesser wealth right now, also effects the real estate market. Experts say the demand for houses in the metros has already reduced by 40-50% in the last few months. While investors and speculators seemed to have left the realty market for now, end-users continue to drive the market but they make up only about 30-40% of the total market size.
    http://realtydigest.blogspot.com

  2. Posted June 20, 2008 at 3:53 am | Permalink

    It was in the year 1995 that Mr. P N C Menon founded Sobha developers.Today Sobha developers a Rs. 12 billion plus company is one of the largest and only backward integrated company in the construction arena.

  3. Posted June 23, 2008 at 6:18 am | Permalink

    Ahead of the opening of Bangalore International Airport at Devanahalli, foremost real estate firm Sobha Developers announced the commencement of their biggest single location project, Sobha Lifestyle, in the locality of the airport area. This project is located just 7 km from airpot.
    J C Sharma, Managing Director, Shobha Developers Limited (SDL) told reporters that Sobha Lifestyle is also the biggest villa project by the company in the city. The project is spread over fifty five acres with 165 villas measuring 5000, 7000 and 10,000 sq feet.

  4. Posted June 26, 2008 at 5:25 am | Permalink

    The Booming real estate prices and the mounting rentals in the city have left the middle-income families dumbstruck. The only option often left for them is the Delhi Development Authority (DDA) flats, which are available at a reasonable price. The Delhi Development Authority (DDA) is all set to launch its biggest housing schemes since 2004 in July 2008. According to the officials, about 6, 000 one and two bedroom flats will be on offer. Thought the final cost of the flats is yet to be decided, the senior officials of the civic agency said it would vary between Rs 12 lakh and Rs 22 lakh, depending on the locality and carpet area. These flats will be mainly located in north and southwest areas like Narela, Vasant Kunj, Dwarka, Rohini, Shalimar Bagh and Bakkarwala. The registration amount of the flats will be Rs 1.5 lakh and it would allot the flats through a draw of lots.For more view- realtydigest.blogspot.com

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