Signature Global plans to spend Rs 1,000-1,200 crore each year to acquire land for housing developments

Signature Global's Expansion Plans

Signature Global's Chairman, Pradeep Aggarwal, has said that the company would spend Rs 1,000-1200 crore per year in land purchases for house construction in order to capitalise on increasing consumer demand. In an interview with PTI, he said that housing demand has been very robust over the last two years across all sectors, whether inexpensive, mid-income, premium, luxury, or ultra luxurious.

Investment Strategy

Aggarwal anticipates that the demand momentum will continue as the economy becomes stronger. "We will be investing Rs 1,000-1200 crore every year for outright purchase of land to achieve our growth plan," Aggarwal said in a statement.

In addition to outright property purchase, he said that the corporation would be willing to work with landlords to create housing developments. "We will continue to focus on the Gurugram property market for short to medium term," added Mr. Singh.

Financial Projections

Aggarwal said that the business expects sales bookings to be around Rs 7,200 crore this fiscal year, up from Rs 3,430 crore the previous year. The business recently inaugurated a new luxury home project in Gurugram, with an investment of Rs 2,200 crore. It has already sold the whole project, which includes 1,008 apartments, for Rs 3,600 crore.

Current Projects and Growth

The 16.5-acre 'DE LUXE-DXP' project is situated on the Dwarka Expressway in Gurugram's Sector 37D. During the first nine months of current fiscal year, Signature Global's sale bookings increased by 41% to Rs 3,124.12 crore from Rs 2,209.78 crore the previous year. Sales bookings are expected to surpass Rs 7,200 crore this fiscal year, after sales of Rs 3,600 crore in its new project on the Dwarka Expressway .

Housing demand has rebounded in major cities after Covid, fueled mostly by end-users, while investors have returned to the market with reasonable price appreciation in the previous two years. Signature Global successfully raised Rs 730 crore with its first public offering in September of last year.

Market Presence and Performance

The public offering, which included a new issuance of shares of Rs 603 crore and an Offer For Sale (OFS) of Rs 127 crore, was subscribed 11.88 times. Signature Global primarily serves the mid-income and affordable housing markets. Signature Global has supplied a total of 6.7 million square feet till December 2023. It is currently building a 16.9 million square foot area with a projected pipeline of 28.4 million square feet of saleable space.