Golden Gate Properties' New Venture - 'The Commune'
The Golden Gate Properties, aiming to bridge the gap caused by the rising real estate costs, has launched 'The Commune', a cost-effective residential project in the heart of Bangalore.
Apartment Details
Starting at an unprecedented price tag of Rs 19 lakh for 995 sq ft – two-bedroom flats are now more accessible than ever in the bustling city.
Amenities and Project Overview
'The Commune' touts itself as a self-contained township, grandly set up near the Mysore Road. With a promising proximity to the NICE Corridor, plans detail that the project will offer 3,500 units, comprising two and three-bedroom apartments ranging from 900-1,500 sq ft.
The developers have managed to incorporate a myriad of impressive amenities. These range from a mini-stadium to a retail center, dedicated bank, digital ATMs, a kindergarten school, a medical center, Wi-Fi connectivity, and two club-houses, synonymous to luxury fixtures in conventional townships.
Investment and Growth Plans
An estimated sum of Rs five hundred crore will be poured into this revolutionary project, setting a precedent for future projects in cities such as Hyderabad, Chennai, Kochi, Coimbatore, Mysore, and Pune.
Perfection in Affordable Solutions
Mr. K. Pratap, the Managing Director of Golden Gate Properties, characterized the company's 4-year endeavor to achieve excellence in constructing affordable housing as having 'mastered the art of building.' Driven by the triumph, the company is gearing up to roll out projects in prime cities over the coming year.
Construction Tech and Profit Margins
Adoption of highly-advanced construction technology sure to expedite project completion while minimizing labor requirements by approximately 75%, balancing the reduced profit margins by about 50%. The undeniable volumes involved are key to this feasibility.
Future 'Commune' Projects
The company is in the planning stages for two 'Commune' projects in Hyderabad, with each set to span over 50 acres. Additionally, a third 'Commune' in Bangalore is envisioned on Sarjapur Road, likely to cover 100 acres with a magnitude of 5,000 units.
Financial Milestones and Intentions
With a revenue target of Rs 1,000 crore now, the company, boasting a Rs 500-crore turnover last year, expresses confidence in its capability to achieve this goal with a plethora of projects on the horizon.
Funding and Equity
Golden Gate Properties fetched $70 million from RREEF India Advisors, a branch of Deutsche Bank Group last year. Plans are afoot for another equity gathering in two years, targeting SPV levels. Towards the end of the current financial year, the company projects two equity infusions.
For its IT SEZ project in Bangalore, a colossal investment of Rs 800-900 crore is being planned. The company foresees raising private equity at an SPV level in 2-3 tranches, with the possibility of securing funds from a singular equity player.