Bengaluru-based Sattva Group to invest ₹12,000-14,000 crore in three years, mulls IPO for Simpliwork

Bengaluru-headquartered real estate major Sattva Group will invest ₹12,000 - 14,000 crore across its residential, commercial and hospitality portfolios, alongside data centres, over the next three years, company managing director Bijay Agarwal said on June 25.

The realty player is also in talks with global investment firm Blackstone to float a commercial REIT in India soon and mulling an IPO for its co-working venture Simpliwork. “I’m very bullish on the co-living and co-working segments,” Agarwal told reporters.

Company vice president for strategic development, Shivam Agarwal, told HT Digital that internal discussions are on and there would be greater clarity on the Initial Public Offering (IPO) timeline within 2-3 months.

Simpliwork was founded in 2018 by Kunal Walia and Sattva currently holds a 55% stake in the company. The brand’s presence extends to 9 cities with a footprint of 3.5 million square feet. It is expected to increase to 4 million square feet by the end of this fiscal, Agarwal said.

Also read: After Awfis, three major co-working firms mull Initial Public Offering in 2025: Sources

Meanwhile, a market debut for Colive - the company's co-living venture with Suresh Rangarajan - is 2-3 years away, Agarwal said.

Sattva Group in talks with Blackstone to float a REIT for commercial assets

The realty player is also in talks with global investment firm Blackstone to float a REIT for commercial assets in India soon. “We are currently in early stages of discussions,” Agarwal said without sharing a target size or timeline for the launch.

Sattva and Blackstone command a joint portfolio spanning 32 million square feet, of which 14 msf is under various stages of planning and development.

Also read: Blackstone invests ₹800 crore in 2 Hyderabad office projects

FY 2024-25 targets

Following residential sales to the tune of ₹3,500 crore in financial year 2023-24, the company has set sight on a target of ₹6,000-6,500 crore for the ongoing financial year, senior leadership of the company said. In the commercial segment, rental income is expected to grow 75% to ₹3,500 crore in FY25, from ₹2,000 crore in the previous fiscal.

Overall, the company plans to launch residential projects spanning 21 msf in the ongoing fiscal across three cities, including Bengaluru and Hyderabad. It’ll strengthen its mark in Mumbai Metropolitan Region in the back half of the financial year with a 1.3 msf project. “Furthermore, we are acquiring land parcels for another 1.5 million sq ft in this segment,” a company statement said.

Also read: Why are real estate developers making a beeline for Mumbai and Bengaluru markets?

In the commercial segment, Sattva presently has projects spanning 9 msf under construction across Bengaluru, Hyderabad and Pune. The company is set to kick off a 4.5 msf project in Chennai next quarter.

So far, the brand has 80 million square feet of completed construction to its credit, with 45 msf in the commercial segment and 35 msf in residential.

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