NEW DELHI: Hiranandani Group has entered into a joint development agreement (JDA) with Krisala Developers to develop 105 acres land in North Hinjewadi, Pune.
Under the agreement, Krisala will look into daily operations. Colliers India facilitated the joint development agreement between the companies.
The project will be developed under integrated township policy, consisting of residential, commercial and retail development. The company plans to invest Rs 2,000 crore in the project which has an estimated revenue potential of Rs 7,000 crore. It will offer properties in mid and premium segments.
Niranjan Hiranandani, chairman, Hiranandani Group, “We bought this land in 2009, but never got an opportunity to consider it on a development plan. Pune has been my target for a while now. We have now decided to go for the construction because the development in the locality is good and we expect the area to grow tremendously in the next few years.”
Currently, phase-I of the project spanned across 30 acres of land with minimum potential of delivering three million sq ft will be developed. As part of a joint development deal, the investment in phase 1 development is estimated at approximately Rs 500 crore, with a projected turnover pegged at approximately Rs 2,100 crore.
The proposed development comprises apartments, villa plots, branded residences, and recreational amenities.
“While the construction costs have gone up in the last few years, the sales and realization have improved too. Housing demand in the area is high too, hence we expect good returns,” said Hiranandani.
Aakash Agarwal, managing director, Krisala Developers said, “Designed as a self-sustained ecosystem that emphasizes liveability, community well-being, and environmental consciousness, this township aims to offer a home for everyone. The development will cater to first-time homebuyers, second home seekers, investors, and NRIs, ensuring inclusivity and comfort for all demographics.”
This is Hiranandani’s first joint development agreement. As to why it decided to go for the same, Niranjan said, “Market has changed a lot over the years with several new business models cropping up. We too are evaluating options of joint ventures (JV)/JDA/development management (DM) and redevelopment opportunities. So for strategic expansion we will continue to develop our township models as well as are open for any such partnership business model in the future.”
Hiranandani Group is currently developing 3-4 projects in Mumbai and will develop 3-4 more projects in the next financial year. Apart from Mumbai and Pune, the company has over 380 acres of land in Chennai, of which it has developed over 190 acres. “In the next 2-2.5 years, we will develop the remaining land parcel,” said Niranjan.
Recently, Hiranandani Group-backed Yotta Data services applied with the US Securities and Exchange Commission (SEC) for a Nasdaq listing. The listing is expected to generate approximately Rs 4,064 crore in cash and the proceeds will be used to fund expansion and grow GPU infrastructure.
