Company News

RPT-Puravankara Projects to launch 18 mln sq ft in FY11

(Repeats story issued on Thursday)

MUMBAI, April 29 (Reuters) - Property developer Puravankara Projects Ltd PPRO.BO will launch about 18 million square feet of residential space in FY11, banking on an expected upsurge in demand in the south Indian cities. "In the next one year, we will be launching another 12 million sqaure feet in Puranvankara, and about 6 million square feet in Providence," its Chief Operating Officer Jackbastian K Nazareth told Reuters over phone. Providence Housing is a wholly-owned unit, through which the company made its foray into affordable houses.

The 18-million square feet of space would be across 9-11 projects, he added. “...Chennai market is slowly picking up, Bangalore market has already picked up quite a lot,” he said, adding property prices are expected move up in south Indian markets.

Puravankara has around 19.01 million square feet under development, spread across Bangalore, Chennai, Hyderabad, Kochi and Kolkata. Puravankara has 11 ongoing residential projects and Provident Housing has 2.

It’s net debt was at around 8 billion rupees as on March 31.

At this point of time, the company is not looking to raise funds, even though it would continue to look at opportunities depending on needs.

The company’s FY10 net rose marginally to 1.45 billion rupees, on a net sales of 4.78 billion rupees. [ID:nBMB010433] “We have not done any new launches in the last one year. I think, it was more prudent in terms of our not having launched (due to the financial crisis)... From a Puravankara perspective that our margins are extremely strong,” Nazareth said.

Puravankara shares closed up 2.89 percent at 106.90 rupees a share, while the BSE Real Estate Index .BSEREAL was up 1.96 percent. (Reporting by Rajesh Kurup; Editing by Prem Udayabhanu)