Incorporated in 2006 with a focus on construction and development of residential and commercial business, Indiabulls Real Estate (IBREL) has a gross development value of Rs 321.7 billion and net worth of Rs 70.9 billion, as on March 31, 2018. It has 15 ongoing projects with a total saleable area of 28.9 million sq ft under its wing. Further, the company generates annuity revenue from a total leasable area of 8.6 million sq ft of completed and ongoing projects. Vishal Damani, Joint Managing Director, Indiabulls Real Estate, shares more...
Please highlight one major challenge faced in FY2017-18.
The real-estate sector has presented a major opportunity to developers in the face of the increased demand for Grade-A office spaces. At Indiabulls Real Estate, we have tried to maximise this opportunity. At the outset, we acquired strategic brownfield projects in select micro markets. The specific locations and the speed to market provided by them serve as a great advantage in the current environment. Our energies have thereafter been directed to execute balance construction along with value-generating elements to provide better Grade-A offices. We built on our networks and relationships with 200+ existing tenants and channel partners to lease out these new premises. Partnerships with global private equity investors further enabled this strategy in terms of financial resources and tenant relationships.
What decision do you consider the biggest contributor to the company's growth in FY17-18?
On the residential front, the introduction of RERA proved to be a validation of a few important tenets of our business strategy. Our perennial focus on strong practices like professionalism, fiscal discipline, transparency and speed in execution has equipped us to face this head on with an advantage over many other developers. On the commercial front too, the recognition of the right kind of projects with quick turnaround times to lease them has been an unheralded key to success. Apart from this, the right partnerships with global investors.
For example, our JV with Blackstone Group for our Mumbai assets (Lower Parel) was completed in a record-breaking time and stood as their largest real-estate deal in India.
Please share a decision you avoided, which could have otherwise impacted the company's top-line and bottom-line.
We took the conscious decision of recognising key markets and focusing our efforts in these markets rather than spreading across the country. With the decision to focus on Mumbai and NCR, we could channel our efforts towards successful execution.
What are your plans for the company's growth in FY18-19?
On the commercial front, we hope to continue partnering with strategic investors and acquiring brownfield projects to further our strategic objectives.
For residential projects, we aim to enter into more joint development projects with landowners or developers. With RERA and other regulatory changes, the market has realised that 'land is not equal to development', and barriers to entry in this sector will bring greater opportunities to players like us.