Valor Estate (VEL) has executed binding agreements with L&T Realty and Lodha Group to develop 5.7 million sq ft carpet area with Rs 6,000 crore potential revenue share to the company.
Shahid Balwa, vice chairman and managing director said, “In the past three months, we’ve inked agreements with Lodha and L&T, set to bring in ~Rs 6,000 crore revenue for the company. In the months ahead, we aim to establish more such partnerships to unlock the potential of our expansive 600+ acres of land.
At the same time, we plan to acquire interests in one or two additional urban renewal projects, which we hope will come to fruition within the next few financial quarters.”Currently, there are approximately four ongoing joint venture residential projects and four owned residential projects with a cumulative saleable area of 15 million sq ft. These projects have been executed on a revenue share or area share basis.
In addition, there are several projects in the pipeline totaling approximately 13 million sq ft at various stages of development.
Project partnerships with developers include Prestige Estate, Adani Realty, Man Infracon and Godrej Realty.
VEL is developing a portfolio of income-generating assets with the potential of two million sq ft of commercial office assets under development in Mumbai and Delhi. In the coming financial year, a commercial project in Aerocity Delhi (50:50 joint venture with Prestige Group) with approximately 0.6 million sq ft of leasable space will be operational.
Potential revenue or area share to Valor Estate from 15.5 million sq ft of saleable residential and 2.3 million sq ft of commercial properties under various stages of development is Rs 13,650 crore.
In addition to the existing 600 acres of land bank, 118 acres of land are under various stages of acquisition of which development agreements/MoU have been signed for 23.5 acres.
In recent years, the company has focussed on reducing its secured debt from Rs 6,139 crore to Rs 1,880 crore (a reduction of 70 per cent) by raising funds through equity placements, joint ventures, and debt settlements. Our hospitality business will require a mix of debt and equity.
The company’s consolidated secured debt presently amounts to Rs 1,880 crore. Of this, Rs 1,331 crore are secured against real estate project cashflows, and these real estate project loans are expected to be fully repaid within the next couple of financial years. The remaining Rs 549 crore pertains to the borrowing facility for hotel operations,
backed by its assets and cashflows.Rs 650 crores of corporate guarantee was released upon repayment of bank debt by related party borrowers.
The company’s net consolidated total income stood at Rs 93.12 crore as against Rs 8.69 crore it recorded in the similar quarter last year. It reported net consolidated loss after tax of Rs 13.18 crore during the quarter ended June 30, 2024 as against Rs 25.91 crore loss it registered in the corresponding quarter of the previous fiscal.
