Parsvnath Developers' Ambitious Township Project
Investment and Revenue Projections
Parsvnath Developers, a prominent Delhi-based real estate firm, is poised to invest approximately ₹1,100 crore over the next four years in the development of a vast, dedicated township situated on the Gurgaon-Sohna road. This futuristic project, slated for launch in the upcoming year, is anticipated to generate substantial revenue of ₹2,700 crore over the specified timeframe.
Project Details and Master Plan Compliance
Spanning an expansive 110 acres, the township's development is in alignment with the new master plan for Sohna road, which has designated the land for residential use. The investment, totaling ₹1,120 crore (excluding land costs), will facilitate the construction of:
- 2 million sq ft of group housing
- 2 million sq ft of independent floors
Debt Repayment Strategy
The success of this proposed township, coupled with the performance of two strategically located commercial properties in the National Capital, is pivotal to Parsvnath's goal of becoming debt-free by the end of the 2014-15 fiscal year. Currently, the firm is grappling with a debt of approximately ₹1,500 crore.
Updates on Ongoing Commercial Projects
- Gole Market Commercial Tower: Construction of the 3.1 lakh sq ft commercial tower is now complete, with the renting process imminent.
- KG Marg Commercial Building: Development of the 1.8 lakh sq ft commercial property is underway.
Diversification and Asset Monetization
Recently, Parsvnath announced plans to monetize a non-core land parcel in South-West India, exploring options for joint ventures with local builders or outright plot sales. Notably, the group possesses 91 acres in Kochi, with 52% already notified as a Special Economic Zone (SEZ), and the process for the remaining half is in progress.
Financial Performance
In the second quarter of the current fiscal, Parsvnath reported a 30% decline in consolidated net profit, standing at ₹12.51 crore, primarily attributed to increased tax outgo. This figure contrasts with the ₹17.93 crore net profit recorded in the corresponding period of the previous year.