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Sumadhura Infracon announces Rs 50 bn investment for RE expansion

2023-09-11

Sumadhura Infracon, a prominent real estate developer, is set to embark on an ambitious expansion plan, aiming to invest approximately Rs 50 billion in the next three years. This significant capital infusion aims to more than double the company's existing residential and commercial portfolio, according to the Chairman's statement.

One of the latest developments in this endeavour is the acquisition of 45 acres of prime land situated along Bengaluru's Outer Ring Road. This strategic purchase will be utilised for the construction of a state-of-the-art commercial facility.

In the upcoming year, 2023, Sumadhura Infracon has set its sights on constructing three million square feet of new residential properties and developing an additional two million square feet of land. Chairman, G Madhusudhan emphasised that a substantial portion of the project funding will come from internal resources. Additionally, the company is actively engaged in discussions with financial institutions to explore opportunities for next-level growth through platform deals.

Sumadhura Infracon has also made noteworthy land acquisitions, securing nearly 100 acres of property in Devanahalli, a suburb of Bengaluru. The company is diversifying its portfolio by venturing into plotted development, with construction already underway on five million square feet of land. Madhusudhan revealed that the initial phase will see the development of two million square feet of plotted land in the fiscal year 2023-24, followed by an additional three million square feet in the subsequent fiscal year 2024-25.

This expansion drive comes in response to strong demand from homebuyers, leading to a substantial surge in sales resulting from new property launches by both national and regional developers. The Mumbai and Bengaluru markets have particularly shone in terms of half-yearly sales, contributing 21% each to the total figures. The majority of these residential sales have been driven by projects launched within the last 18 months.

The real estate sector has witnessed a significant upswing, with H1 2023 recording the launch of more than 151,000 residential units, marking a remarkable 24% increase compared to the previous year. This growth has also been consistent on a quarterly basis, with over 76,000 units launched in the second quarter of 2023.