In its attempt to emerge among the country’s top three real estate companies, Birla Estates is majorly focusing on real estate development. Mainly due to the regulatory and macroeconomic reforms, the company is banking upon the strong land bank in its possession and expecting consolidation of the realty sector.
A subsidiary of BK Birla Group Company Century Textiles and Industries NSE 0.49 % (CTIL) — Birla Estates currently owns over 200 acres in various cities like Mumbai, Pune, and Bengaluru. It will employ a capital efficient, asset-light model for sourcing joint venture deals and developing the brand.
Talking about the company’s future plan, KT Jithendran, chief executive, Birla Estates, stated, “Our initial focus is to create a strong brand in real estate through the development of premium and higher mid-income residential housing in identified land parcel owned by the group as well as through joint ventures with landowners.”
Currently, Birla Estates is gearing up for a major expansion of its existing bank of over 200 acres, involving an investment of Rs 2,000-2,500 crore on development of these parcels, he said, adding that the company expects to fully develop the land bank in the upcoming 10 years.
As per the sources, Birla Estates is in talks with a number of landowners and developers for joint ventures and may even explore acquisitions and outright purchase for the right deals that meet its acquisition criteria.
“We are always on the lookout for well-located land parcels,” said Mr. Jithendran, adding Birla Estates is open to evaluating the purchase of distressed assets.