DivyaSree Developers to increase focus on residential segment

The Bangalore-based DivyaSree Developers plans to increase its focus on the residential segment. The company, which has been predominantly into commercial development so far, plans to increase the residential development to 30 per cent of the portfolio, Bhaskar N Raju, executive director, DivyaSree Developers, told Business Line. Currently, it has 5.4 million sq ft of commercial and 1.8 million sq ft of residential space under construction. Going forward, “We plan to launch 1.5 million sq ft commercial and 5 lakh sq ft residential developments this year,” he said. The company is looking at revenues of Rs 300 crore a year from 2014-15. Currently, the company has only rental income from its commercial buildings, and “we expect our new residential launches to start earning us revenues in two years,” he added. In the residential market, the developer plans to launch 'uber-luxury', mid-market, and plotted developments in Bangalore and Hyderabad. In Chennai, DivyaSree would launch a 140-acre township project in a 50:50 partnership with Kotak Realty Fund. On funding for these projects, Raju said that 30-40 per cent would be equity, which is surplus rental income from its commercial developments, and the rest would be bank debt. “We are also open to partners at the SPV level, but not immediately,” he added. The company has a 490-acre land bank, and would continue to acquire land, said Raju. “Our focus is also on building commercial space portfolio and we don't sell our commercial buildings; we are looking at buying commercial space -- finished rent-yielding buildings,” he added source: http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=19798&cat_id=1