Bangalore: Property developer Surendra Hiranandani, who owns real estate firm Hiranandani Upscale, plans to enter the luxury housing space under the Signature brand.
Both Hiranandani Upscale, which develops premium real estate projects, and Signature will become units of a new entity, House of Hiranandani.
The new entity will invest about $1.2 billion (Rs 5,868 crore) in the next three-five years as it scales up by entering new geographies and property segments such as luxury, said Surendra Hiranandani, founder and managing director.
Hiranandani Upscale was formed about five years ago by Surendra Hiranandani, who is also a co-founder of Mumbai-based real estate company Hiranandani Constructions Pvt. Ltd.
While Hiranandani Constructions has largely remained a Mumbai-centric real estate developer, Upscale was formed to focus on projects in cities such as Bangalore, Chennai and Hyderabad. The company is run by Surendra Hiranandani and his daughter Neha Hiranandani, who is a director.
“While the Upscale category of residences will continue to be the bulk of our development, in order to grow, one needs to differentiate the brands when you enter new markets,” he said.
Signature will be positioned as a luxury brand in the company, under which it will develop villas and apartments.
“Upscale created and maximized value in suburban locations in cities such as Chennai,” said Sanjay Dutt, chief executive officer, business, Jones Lang La Salle India, a property advisory. “However, the rationale for the current brand repositioning is strong and we will see more new products coming out of the flagship brand.”
The company will raise about $50 million equity from real estate funds, largely for growth and expansion, Surendra Hiranandani said.
Hiranandani Upscale had raised about Rs 500 crore equity three years ago from financial services companies such as Wachovia, and the firm has already bought back the shares.
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