Sattva Group Announces ₹12,000-14,000 Crore Investment Plan, Eyes IPO for Simpliwork
Bengaluru-headquartered real estate major Sattva Group plans to invest ₹12,000-14,000 crore across its residential, commercial, and hospitality portfolios, alongside data centers, over the next three years, as announced by company Managing Director Bijay Agarwal on June 25.
The Sattva Group is also in talks with global investment firm Blackstone to launch a commercial REIT in India and is considering an IPO for its co-working venture, Simpliwork. “I’m very bullish on the co-living and co-working segments,” Mr. Agarwal told.
Shivam Agarwal, the company’s Vice President for Strategic Development, told that internal discussions are ongoing, and there will be greater clarity on the Initial Public Offering (IPO) timeline within 2-3 months.
Simpliwork, founded in 2018 by Kunal Walia, currently has a 55% stake held by Sattva. The brand extends its presence to 9 cities with a footprint of 3.5 million square feet, expected to increase to 4 million square feet by the end of this fiscal year.
Meanwhile, a market debut for Colive, the company's co-living venture with Suresh Rangarajan, is anticipated in 2-3 years.
The Sattva Group is in early discussions with Blackstone to float a REIT for commercial assets in India, although no target size or timeline for the launch was shared. The joint portfolio with Blackstone spans 32 million square feet, with 14 million square feet under various stages of planning and development.
Following residential sales of ₹3,500 crore in FY 2023-24, the company has set a target of ₹6,000-6,500 crore for the ongoing financial year. In the commercial segment, rental income is expected to grow 75% to ₹3,500 crore in FY25, up from ₹2,000 crore in the previous fiscal year.
The company plans to launch residential projects spanning 21 million square feet in the ongoing fiscal across three cities, including Bengaluru and Hyderabad. Additionally, it aims to strengthen its presence in the Mumbai Metropolitan Region with a 1.3 million square foot project in the latter half of the financial year. The company is also acquiring land parcels for another 1.5 million square feet in this segment.
In the commercial segment, Sattva currently has projects spanning 9 million square feet under construction across Bengaluru, Hyderabad, and Pune, with a 4.5 million square foot project set to commence in Chennai next quarter.
To date, the brand has completed 80 million square feet of construction, with 45 million square feet in the commercial segment and 35 million square feet in residential.
Image source-sattvagroup.com
