A new entrant in the co-living business
Shapoorji Pallonji Group is expanding their ventures and have entered the co-living business. They will be building co-living projects in Pune and Mumbai Metropolitan Region (MMR) in the beginning of next year. The group is known for its luxury to mid-income homes, but is diversifying their services and portfolios, and plan to start shared living and student housing projects, capitalising on an alternative asset class targeted at millennials who prefer renting over owning homes.
The co-living and student housing sectors were profoundly affected due to reverse migration amidst the pandemic. Venkatesh Gopalkrishnan, Chief Executive of Shapoorji Pallonji Real Estate, said in an interview that they would start co-living and student housing plans in a measured manner. They see massive potential in this venture over the next decade as there is an increase in work from home and rising spend on education. In the mid-to-long term, they are thinking of making this venture a separate business and partnering with an investor to boost it.
Out of its 1,000 acres in Pune and Mumbai, with 600 acres of buildable area, Shapoorji Pallonji Real Estate plans to build on about 100 acre. They will build and sell villas or row houses.
The firm had plans to set-up a Rs 44 billion investment platform in partnership with a global sovereign fund to enter India’s growing warehousing space. However, the pandemic led to delay of plans.
The group’s Joyville project will include 2,700 apartments.
Source- Live Mint