Sattva Group invests Rs.12-14k crore to launch a REIT in next 3 years

On June 25, Bijay Agarwal, the managing director of Sattva Group, a real estate company based in Bengaluru, announced that the company plans to invest Rs.12,000 - 14,000 crore in the next three years. This investment will be allocated across various sectors including residential, commercial, and hospitality portfolios, as well as data centres.

The real estate company is currently engaged in discussions with the global investment firm Blackstone to launch a commercial REIT in India in the near future. Additionally, they are considering an IPO for their co-working venture, Simpliwork. Agarwal expressed his strong optimism towards the co-living and co-working sectors during a press conference. 

During a  media interaction, the vice president of the company for strategic development, Shivam Agarwal, that internal discussions are on and there would be greater clarity on the Initial Public Offering (IPO) timeline within 2-3 months.

Simpliwork was established by Kunal Walia, and recently Sattva Group holds 55% stake of the company. Now, the presence of the brand extends to 9 cities with a footprint of 3.5 million square feet. Shivam highlighted that, this presence will extend to 4 million square feet by the end of this fiscal.

Shivam also added that, their co-living venture with Suresh Rangarajan will be brought to the market is in 2-3 years.

The realty conglomerate is also in conversation with global investment firm Blackstone to float a REIT for commercial assets in India soon.

According to the market report, Sattva and Blackstone command a joint portfolio spanning 32 million square feet, of which 14 msf is under various stages of planning and development.

The company has already collected Rs.3,500 crore in financial year 2023-24 and set a target Rs.6,000-6,500 crore for the ongoing financial year. In case of commercial real estate rental income is expected to grow 75% to Rs.3,500 crore in FY25, from Rs.2,000 crore in the previous fiscal.

in this segment of real estate, Sattva Group is conduting the construction work on 9 msf across Bengaluru, Hyderabad and Pune. The company is set to kick off a 4.5 msf project in Chennai next quarter.The company intends to introduce residential projects covering 21 million square feet in the current fiscal year across three cities, such as Bengaluru and Hyderabad. It aims to enhance its presence in the Mumbai Metropolitan Region in the latter part of the financial year through a 1.3 million square feet project. Additionally, the company mentioned in a statement that they are procuring land parcels for an additional 1.5 million square feet in this sector.