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Sumadhura Group plans ₹17,000 cr investment in real estate projects, 45 million sq ft construction over next four years
Sumdahura Group is open to opportunities in the Mumbai real estate market and may float IPO in the medium to long term for raising finance and further expansion
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Bengaluru-based Sumadhura Group has announced an investment of ₹17,000 crore and plans to launch 45 million sq ft over the next four years by 2030. The company plans to expand further in Bengaluru, Hyderabad, Chennai and is also exploring and open to opportunities in the Mumbai real estate market, said Madhusudhan G, Chairman and Managing Director, Sumadhura Group. He added that the company is also open to floating an Initial Public Offering (IPO) to raise funds in the medium to long term.
The company marked 30 years of its business earlier this week, stating it is evolving from a residential player into a diversified real estate group, with an expanding presence across Bengaluru, Hyderabad and Chennai and a growing portfolio across multiple asset classes. Until now, the company has completed 56 projects, spanning over 17 million sq ft, 15 million sq ft ongoing and over 40 million sq ft in the pipeline.
"Strengthening its residential portfolio, the Group plans to launch 35 million sq ft across its core markets, with an estimated Gross Development Value (GDV) of ₹38,000 crore. The group plans to foray into the luxury villas segment and expand its land bank in high-growth micro-markets across three cities," the company said in its statement.
Commercial and warehousing
On the commercial front, the company plans to develop 4.2 million sq. ft. of Grade A office space, with a potential annual rental income of ₹700 crore. This will include Sumadhura’s entry into premium commercial developments along Bengaluru’s Outer Ring Road (ORR), strengthening its commercial presence and building a sizable base of rent-yielding assets.
The company plans to scale up its warehousing portfolio to 6 million sq ft of planned development and a potential annual rental income of ₹225 crore. Building on the success of its logistics park in Hoskote, Bangalore and its recent entry into Chennai with a 1.2 million sq. ft. Grade A industrial and logistics park in Red Hills, this expansion will deepen the Group’s presence in the industrial and logistics segment and scale-up its portfolio of rent-yielding assets across the key warehousing corridors, the company said.
IPO plans
According to Madhusudhan, the company does not have any immediate or short-term plans to float an IPO and raise funds for financing. "The ₹17,000 crore of planned investment over the four years will come from debt and pre-sales. We are aiming at debt of ₹3,000 crore and pre-sales of ₹14,000 crore to meet our total investment of ₹17,000 crore," Madhusudhan said.
"In the medium term or long term, we may explore the option of floating an IPO, but it will not be immediately. We are also open to the Mumbai real estate market including redevelopment opportunities. We keep looking at proposals, but we will enter when the opportunity and time is right for us," he told Hindustan Times Real Estate.
"Going forward, our focus will be on strengthening our position in established markets, expanding into emerging growth corridors, and building the capabilities to capture opportunities across India's evolving real estate landscape," Madhusudan said.
