Signature Global, a prominent player in the real estate sector, has unveiled ambitious plans for the completion and delivery of over 17 million square feet of residential and commercial space in the Gurgaon and Sohna areas by the financial year 2025-2026. The revenue recognition for these myriad projects is projected to be a substantial Rs 11,000 crore.
According to insights from a high-ranking company executive interviewed by Moneycontrol, the developments comprise 28 distinct projects launched primarily in the mid-segment and affordable categories during 2021-2022. Pradeep Aggarwal, Chairman and Whole-Time Director of Signature Global, notes, "By FY 2025-2026, we hope to deliver and finish these 17 million square foot projects. The revenue recognition for these endeavors is anticipated to reach Rs 11,000 crore. We plan to begin completing these projects in 2025."
Aggarwal elaborates that these projects are strategically located in Gurgaon and its surrounding suburbs, including Sohna. The breakdown of new residential units reveals that apartments in the mid-income segment commence at approximately Rs 1 crore, while those categorized as affordable begin in the range of Rs 25-30 lakh.
As per their detailed data, the comprehensive plan includes 23 residential and 5 commercial and retail projects set for completion by 2026. Notably, among these residential ventures, 8 are dedicated to mid-income housing in Gurgaon, 6 for mid-income in Sohna, and 9 for affordable housing.
The entire development encompasses a significant area of 218.5 acres within Sohna and Gurgaon, necessitating an estimated total investment of between Rs 7,500 and Rs 8,000 crore.
In addition to these developments, Signature Global has committed to introducing new projects that could yield a revenue top line ranging from Rs 10,000 to Rs 12,000 crore in the following fiscal year, alongside creating an additional 10 million square feet of saleable space. Aggarwal asserts, "The new launches will comprise three projects, which will come up in Gurgaon sectors 71, 84, and the Sohna region of the district, featuring premium projects with a starting ticket size of around Rs 3 crore."
The anticipated investment for these new ventures is around Rs 6,500 crore, which envelope land acquisition costs, with an expected revenue potential of approximately Rs 12,000 crore.
In a significant move to bolster its financial standing, Signature Global successfully executed its first public offering in September 2023, aiming to raise Rs 730 crore. The offering saw robust interest, with shares being subscribed to 11.88 times more than available, including an Offer for Sale (OFS) worth Rs 1,277 crore and a new share issue valued at Rs 603 crore.
Through December 2023, Signature Global has effectively delivered 6.7 million square feet of space, with an active development of 16.9 million square feet underway and an additional 28.4 million square feet slated for potential sale in the future.
In terms of financial performance, the real estate firm has reported a combined net profit of Rs 2.17 crore for the quarter ending in December, a substantial recovery from a net loss of Rs 44.89 crore recorded during the equivalent period in 2017, a testament to the company's uplifting surge in revenue.