Months after it formed a joint venture platform with Standard Chartered Private Equity, IFC and Asian Development Bank to develop affordable housing in India, real estate entity Shapoorji Pallonji & Company Ltd has launched its affordable housing brand – Joyville.

The group is targeting to build 20 million sq ft of residential space over the next seven-eight years in the first phase of its affordable housing business plan.

These projects will be developed across Mumbai, Pune, National Capital Region, Chennai, Kolkata, Bengaluru and Ahmedabad and will be priced between 20 lakhs and 60 lakh depending upon the location.

Shapoorji, along with its joint venture partner, has committed $250 million to the project over a seven-eight-year period. The joint venture partner will bring in about 70 per cent of the investment and the balance will be by Shapoorji.

Kekoo Colah, CEO, Shapoorji Pallonji Real Estate, told Business Line, “Affordable housing is a deep-pocketed business. Along with our joint venture partners, we will look to expand our business in all major metros”.
Shapoorji Pallonji will utilise its land parcels for the projects.

Asked if the company intends to put its muscle only on the affordable segment, Colah said the company has presence in various projects, including luxury and premium, and will continue with its other ventures as well.

Speaking on the Joyville brand, Colah said that product configuration of these developments will predominately include one BHK apartments of 500-600 sq ft and two BHK apartments of 800-900 sq ft priced at 20-50 lakh per unit.

Shapoorji Pallonji is targeting about 20,000 homes across seven cities in the next seven years.

Asked if the company is looking to acquire distressed assests, he said that the company is always on a look out for potential assets.

Shapoorji Pallonji is owned by the single-largest shareholder of Tata Group's holding firm Tata Sons, Pallonji Mistry. One of his two sons Cyrus is currently Tata Sons chairman. The other son Shapoor manages Shapoorji Pallonji.

With this launch, Shapoorji Pallonji joins the like of mainstream developers Tata, Godrej and Mahindra’s to have interests in the affordable segment.
According to the Urban Development Ministry, India faces a housing shortage of around 18.4 million.

Source:http://www.thehindubusinessline.com/news/real-estate/shapoorji-pallonjis-affordable-housing-brand-joyville-to-build-20000-units-in-7-cities/article8159010.ece