ATS Homekraft, a group company of National Capital Region-based real estate developer ATS, has signed joint development agreements to enter the Mumbai, Delhi and Gurgaon markets and also expand in Noida, its chief executive said.
The company plans to invest about Rs 4,000 crore in these projects, which will start in 2022-23 with a total development potential of 6 million sq ft, Mohit Arora told ET.
“The idea is to enter the market with the right kind of product. At all the locations, deals have been finalised and we intend to launch projects at six different locations,” he said.
HDFC Capital Advisors, the wholly owned private equity arm of mortgage lender HDFC, had invested Rs 400 crore in ATS Homekraft last year and holds a minority stake.
In the current financial year, the company will start projects in Noida’s Sector 150, the Yamuna Expressway near the new Jewar airport, Sohna and the Dwarka Expressway in Gurgaon, Rohini in Delhi and Powai in Mumbai.
The company is also exploring development opportunities in tier-2 cities.
“While ATS caters to the premium segment, at ATS Homekraft, we will target the younger population and the sizes of apartments are also small to keep the price low. We have a big focus on plotted development in NCR this year,” Arora said.
In Noida 150, the company has entered into a joint development agreement to develop 1.5 million sq ft on 10 acres of land.
The investment in the project — a mix of plotted and high-rise development — is about Rs 500 crore, while the revenue expected is Rs 1,300 crore.
On the Yamuna Expressway, it has planned plotted developments on a 100-acre plot with a revenue potential of Rs 900 crore.
In Sohna also, the company will do plotted development under the Deen Dayal Jan Awas Yojana of the Haryana government.
“On the Dwarka Expressway, we will develop 1.7 million sq ft of group housing on a 10-acre land parcel. The project will be developed in three phases, and the first phase of about 700,000-800,000 sq ft is expected to be launched by June or July,” Arora said.
The investment in the project will be Rs 550 crore, while revenue is expected to be around Rs 1,100 crore.
The company will enter the Delhi and Mumbai markets for the first time.
“In Delhi, we have entered into an agreement to develop 500,000 sq ft on a 4-acre land parcel in Rohini. The two- and three-bedroom apartments will be priced between Rs 1.25 crore and Rs 2.5 crore,” said Arora.
The company will invest Rs 270 crore in the project and expects to generate revenue of Rs 750 crore.
In Mumbai’s Powai, ATS Homekraft will develop 425,000 sq ft with a total investment of Rs 600-650 crore.
The company posted total sales of Rs 1.040 crore in the financial year 2021-22 and is targeting Rs 1,370 crore in FY 22-23.
The company was conceived in 2018 by the ATS Group to focus on mid-income housing needs in India and is currently executing five projects in the NCR region, with a total built-up area of about 10 million square feet.
Source : ET