Delhi realty firm bets big on Pune, Maharashtra

Delhi-based construction company B L Kashyap & Sons is extending its operations to Pune through its subsidiary, Sole Space Projects Ltd.

For its first venture in the city, the company is planning to develop a 1.5 lakh sq ft area, for which the construction work will start in March. In addition, the company is also eyeing Mumbai and may start project here in a year.

"We are planning big for Pune as it is a big market with quick connectivity to Mumbai through highway. We have established a regional office of Sole Space Projects there, which will be looking after our projects all over the state," said Vineet Kashyap, managing director.

The company has got offers from Mumbai developers for joint ventures. "Though some major Mumbai real estate developers have come up with offers to us, we have not firmed up our plans. However, we plan to venture into the next year," Kashyap added.

The company plans to reach out to other cities in the state such as Nashik and Nagpur. "If there are signs of realty growth there, we will establish our presence. We are also concerned about infrastructure cost," he said.

In Pune, the company is planning a mega residential project spread over 2.5 million sq ft. "We are in the final phase of talks with the land owners there and we expect to start the project in two years," Kashyap noted. The amount earmarked for this project would be Rs 350 crore. At present, the company is continuing with two projects in Pune worth Rs 60 crore.

"Before we actually take up the projects in the cities, we work with local construction companies and then start our own projects. In the process, our company gives full infrastructure backing to the local firms," said Kashyap.

The realty firm is also planning an initial public offering (IPO). "We are going for over a Rs 100 crore IPO and have filed a draft red herring prospect," he added.