MUMBAI: Kerala-based Malabar Group, which is a leader in gold business with Malabar Gold & Diamonds, is entering the realty business with Rs 10,000 crore worth commercial and residential projects, including townships, to be developed over the next three years.
The group, through its realty arm Malabar Developers, will raise funds from investors, including the NRIs and banks, to develop commercial and residential properties across the South in the first phase and then into the Northern and Western markets over the next five years. Malabar Group chairman MP Ahammed told PTI that debt will not be too high as the company already has over 1,000 investors and the debt-equity ratio will not be more than 1:1.
Malabar Developers currently has a land bank of 200 acres spread in three states – Kerala, Tamil Nadu and Karnataka – with over 2 million sq. ft. of ongoing projects and more than 16 million sq. ft. of upcoming projects. “Our biggest township project on 120 acres is already underway in Kozhikode, called Malabar Marina Convention Centre and township. We also have a 30-acre project coming up in Thrissur and the biggest mall project in Thiruvananthapuram on a 20-acre plot. The Kozhikode project on completion will be worth around Rs 5,000 crore,” Ahammed said.
Other ongoing projects include the Rs 2,000-crore hitech township in Thrissur in central Kerala, a township in Mangalore, a 0.4 million sq. ft. ‘Mall of Travancore’ in Thiruvananthapuram. On the land-bank the company has, he said apart from around 200 acres in Kerala, the company already has a 30-acre plot in Mangalore and are scouting for joint venture partners in Mysore, Bengaluru and Hyderabad. The next phase will have the company spreading out to Maharashtra, Andhra and Telangana, Ahammed said.
When asked about the reason for diversification, he said the company has conducted a strategic survey through the global consultant E&Y which shows that townships and standalone premium residential projects have large scope as 90 per cent of the homeowners are looking for upgrades. “We have prepared a roadmap to emerge as one of the biggest real estate players in the country by 2020 by developing commercial business clusters, shopping malls, convention centres, affordable housing, technology hubs and integrated townships,” said Ahammed.
The group has also firmed up plans for budget homes in major cities. “Our plan is to construct luxury villas and affordable budget homes across the main cities in the country over the next five years. We are in the process of tying up for joint ventures at the national level,” he added. Malabar Developers also announced the signing of Mollywood actor Dulquer Salmaan as its brand ambassador. Malabar Gold, one of the top five global players in the segment, has 156 showrooms across nine countries.
Credits ET Realty