Mumbai: Palava City spread across 5000 acre near Mumbai may scale up and generate revenues worth ₹8,000 crore per year in the next couple of years. Thanks to the development of residential and commercial properties including offices, warehousing and industrial spaces and life sciences hub, according to company sources.
The development of the smart township was started in 2010 by realty major Lodha, listed as Macrotech Developers. Phase one of the project which covered 300 acre was sold out and delivered to 20,000 families. In 2014, the company started its phase 2 spanning 1,000 acres with over 75 million sq ft of developable area, of which over 20 million sq ft is complete. Currently, the project has nearly 175,000 residents.
Palava City: A real estate gold mine
“Palava is experiencing a boost in economic activity with an increasing number of jobs, whether through life sciences, back offices, training centres, industrial or warehousing facilities. It is strategically located and with some of the large infrastructure being developed in the vicinity, we are positive of a significant jump in consumer traction, potentially witnessing annual revenue of $1 billion in the next few years”, Abhishek Lodha, MD and CEO, Lodha said.
The developer has so far monetised nearly 400 acre of land at Palava, either partially through joint ventures or on an outright basis to end users. Currently, it has two joint ventures: one with Morgan Stanley Real Estate Investing (MSREI) for a 72-acre development and another pan India platform with Bain Capital and CDPQ’s arm, Ivanhoe Cambridge, for a 110-acre land parcel in Palava city.
Palava city real estate plan
The company is currently developing 5.5 million sq ft of warehousing and logistics space in Palava, which has seen substantial traction from several end users, such as Skechers and Schlumberger, etc.
Along with the expected revenue growth for Palava, Lodha itself is also likely to witness major traction in sales going forward. In the ongoing financial year, Palava’s contribution is expected to be around 15% of Lodha’s sales of more than ₹14,500 crore.
