Sobha Developer's most valued land parcel in the heart of Bangalore has finally got a blue print.
The Bangalore-based developer's 2-acre marquee property, located on the Church Street- St Mark's Road junction, had got many heads turning including that of politicians, when it was put on the block three years ago. But now Sobha is developing the property and has started the process of getting in place approvals.
J C Sharma, vice chairman and MD of Sobha Developers, said, "We have planned for a 200,000-sqft (excluding car park) office cum mall." The split in the office to mall space will be 50:50. The work on the project will start once the approvals are in place."
He said the Nadathur family has picked up a significant stake in the property, which has been channelled into a special purpose vehicle. Sharma declined to divulge the Nadathurs' stake in the project.
Three years ago Anand Nadathur, son of Infosys Technologies co-founder N S Raghavan, had invested Rs 225 crore into Sobha Developers through his personal investment arm, Purna Partners.
At the time it was said that the money would be funnelled into multiple special purpose vehicles in which Nadathur could hold up to 51% stake.
Part of Nadathur's investment was made in Sobha's Trissur township project, Sobha City, from which he has exited now. "We have bought back our investors stake of 30% for a Rs 30 crore," said Sharma.
Results
Sobha Developers' revenue in the quarter ended June grew 56% to Rs 433.2 crore, from Rs 277.7 crore in the corresponding quarter a year ago.
The company's net profit stood at Rs 45 crore, up 73% from Rs 26 crore in the year ago period.
During the quarter, the Bangalore-based developer sold 835,600 sqft compared to 665,659 sqft in the corresponding period of last year. New sales stood at Rs 479 crore, of which only 51% has been recognized in the quarter. Real estate companies book their revenue (from sales of projects) only when 25% of a project (excluding land value) is complete. The company has unrecognized revenues of Rs 1,230 crore as of date, "of which Rs 480 crore will get recognized in the subsequent quarters of the ongoing fiscal," said J C Sharma, vice chairman and MD, Sobha Developers.
"On the contractual side, we have completed and handed over 1.17 million sqft during the quarter. We have on hand 9.22 million sqft of contractual work which would take care of our requirements for the next three years," said Sharma. Of the 1.17 million sqft of contractual work completed, 70% of the work was done for Infosys across Chennai, Hyderabad, Pune, Mysore, and Mangalore.
The company had an average sales price realization of Rs 5,737 per sqft as compared to Rs 4,547 per sqft in the year-ago period, with an operating margin of 40%.
The company also monetized a 21-acre land parcel in Pune during the quarter for a sum of Rs 95 crore, which is reflected in its revenues.
As part of the succession plan, P N C Menon, the founder of Sobha Developers, has been appointed as chairman emeritus, and his son, Ravi Menon, is the new chairman of the company with effect from June 30, 2012.
The Bangalore-based developer's 2-acre marquee property, located on the Church Street- St Mark's Road junction, had got many heads turning including that of politicians, when it was put on the block three years ago. But now Sobha is developing the property and has started the process of getting in place approvals.
J C Sharma, vice chairman and MD of Sobha Developers, said, "We have planned for a 200,000-sqft (excluding car park) office cum mall." The split in the office to mall space will be 50:50. The work on the project will start once the approvals are in place."
He said the Nadathur family has picked up a significant stake in the property, which has been channelled into a special purpose vehicle. Sharma declined to divulge the Nadathurs' stake in the project.
Three years ago Anand Nadathur, son of Infosys Technologies co-founder N S Raghavan, had invested Rs 225 crore into Sobha Developers through his personal investment arm, Purna Partners.
At the time it was said that the money would be funnelled into multiple special purpose vehicles in which Nadathur could hold up to 51% stake.
Part of Nadathur's investment was made in Sobha's Trissur township project, Sobha City, from which he has exited now. "We have bought back our investors stake of 30% for a Rs 30 crore," said Sharma.
Results
Sobha Developers' revenue in the quarter ended June grew 56% to Rs 433.2 crore, from Rs 277.7 crore in the corresponding quarter a year ago.
The company's net profit stood at Rs 45 crore, up 73% from Rs 26 crore in the year ago period.
During the quarter, the Bangalore-based developer sold 835,600 sqft compared to 665,659 sqft in the corresponding period of last year. New sales stood at Rs 479 crore, of which only 51% has been recognized in the quarter. Real estate companies book their revenue (from sales of projects) only when 25% of a project (excluding land value) is complete. The company has unrecognized revenues of Rs 1,230 crore as of date, "of which Rs 480 crore will get recognized in the subsequent quarters of the ongoing fiscal," said J C Sharma, vice chairman and MD, Sobha Developers.
"On the contractual side, we have completed and handed over 1.17 million sqft during the quarter. We have on hand 9.22 million sqft of contractual work which would take care of our requirements for the next three years," said Sharma. Of the 1.17 million sqft of contractual work completed, 70% of the work was done for Infosys across Chennai, Hyderabad, Pune, Mysore, and Mangalore.
The company had an average sales price realization of Rs 5,737 per sqft as compared to Rs 4,547 per sqft in the year-ago period, with an operating margin of 40%.
The company also monetized a 21-acre land parcel in Pune during the quarter for a sum of Rs 95 crore, which is reflected in its revenues.
As part of the succession plan, P N C Menon, the founder of Sobha Developers, has been appointed as chairman emeritus, and his son, Ravi Menon, is the new chairman of the company with effect from June 30, 2012.
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