New Delhi, Jan 28 (PTI) Indiabulls Real Estate (IBREL) expects its annual rental income from commercial properties to jump over two-fold to Rs 1,513 crore by 2020-21 on the back of acquisition as well as development of new assets. Also Read - Throwback Tuesday! When Shah Rukh Khan, Salman Khan Cycled Through Streets of Mumbai
The annual rental income of the Mumbai-based developer currently stands at Rs 720 crore with a leasable area of 5 million sq ft, according to an investors presentation. Also Read - Mumbai Rains: Heavy Rains Paralyse City, IMD Warns of 'Flooding', Local Trains Suspended Due to Waterlogging; BMC Declares Holiday
IBREL is currently developing two commercial properties in Mumbai and three in Gurgaon. Also Read - Kangana Ranaut Receives Notice From BMC Over 'Unauthorised Construction' of Her Residence, Here’s What They Found ‘Illegal’
That apart, the company has recently entered into a binding and definitive agreement to acquire a prime and newly constructed commercial building, having leasable area of around 2.5 lakh sq ft in Gurgaon.
“With this acquisition, total annualised annuity revenue would be Rs 1,513 crore in FY20-21,” the presentation said.
IBREL said that it has one of the largest city-centre commercial portfolio of nearly 5 million sq ft in the financial capital.
The company said that it currently has more than 200 marquee tenants generating Rs 720 crore annuity revenue.
It expects substantial growth in its rental business through “other 6 office developments currently under progress reaching to Rs 1,513 crore annuity revenue”.
IBREL had a net debt of Rs 4,205 crore at the end of the third quarter of this fiscal in its rental business.
Unlike housing sector, the commercial segment is doing fairly well and attracting huge investments from domestic and foreign players.
Last week, the company reported a 45.82 per cent rise in its consolidated net profit at Rs 85.35 crore for the third quarter ended December 31 against Rs 58.53 crore in the year ago period.
Total revenue from sales rose to Rs 2,164.44 crore for the third quarter against Rs 492.90 crore in the same period last fiscal.
IBREL has a land bank of 1,046 acre spread over Mumbai, Chennai and NCR as well as 2,588 acre in Nashik SEZ.
This is published unedited from the PTI feed.