Arvind SmartSpaces Limited, a prominent player in the real estate sector, has announced a strategic move to strengthen its position in Ahmedabad East Infrastructure LLP. The company's Board of Directors has given the green light to increase its partnership interest and profit-sharing in the LLP, signaling a commitment to expand its footprint in the real estate construction and development arena.

Key Highlights of the Transaction

• Stake Increase: Arvind SmartSpaces will consolidate its partnership interest in Ahmedabad East Infrastructure LLP from 51.43% to 55.24%.
• Profit Share Enhancement: The company's profit-sharing percentage will rise from 94.25% to 98.00%.
• Acquisition Details: The consolidation involves purchasing the entire partnership interest of Arvind Infrabuild LLP.
• Transaction Value: The acquisition is valued at Rs. 7.10 crores, to be paid in cash.

About Ahmedabad East Infrastructure LLP

Ahmedabad East Infrastructure LLP operates in the real estate construction and development sector. The partnership demonstrated strong financial performance with a turnover of Rs. 104.00 crores in the financial year 2021-22.

Transaction Insights

• Nature of Transaction: The deal is classified as a related party transaction.
• Fairness Assurance: The company affirms that the transaction is being conducted at arm's length and fair value.
• Strategic Objective: The primary aim of this acquisition is to consolidate and increase Arvind SmartSpaces' profit share in the partnership.
• Timeline: The transaction is expected to be completed within 30 days, subject to the execution of the LLP agreement and transfer of consideration.

This strategic move by Arvind SmartSpaces Limited underscores the company's commitment to strengthening its market position in the real estate sector. The increased stake in Ahmedabad East Infrastructure LLP may provide the company with greater control over operations and a larger share of the partnership's financial success.

Arvind SmartSpaces , a leading real estate developer, has reported robust financial results for the first quarter of the fiscal year, along with significant leadership changes and ambitious growth plans.

Financial Highlights

The company reported impressive year-on-year growth across key financial metrics:

Leadership Changes

In a strategic move aimed at driving the company's next phase of growth, Arvind SmartSpaces has appointed Priyansh Kapoor as CEO and Whole-Time Director. Kamal Singal will continue as Managing Director, ensuring continuity and strategic oversight.

Operational Performance

• Bookings stood at ₹175.00 crore for the quarter
• Collections reached ₹191.00 crore
• The company maintains a net cash position of ₹50.00 crore

Future Outlook

Arvind SmartSpaces has set ambitious targets for growth and expansion:

• Targeting 30-35% growth in the coming year
• Planning launches worth ₹3,000.00-4,000.00 crore across five projects in key locations
• Expecting unrealized operating cash flow exceeding ₹4,000.00 crore from the current pipeline
• Aiming to add new projects with a cumulative topline potential of ₹5,000.00 crore across Ahmedabad, Bengaluru, and Mumbai Metropolitan Region (MMR)

Investment Allocation

The company has outlined its investment strategy across key markets:

• 40% allocation for Bangalore
• 40% allocation for Ahmedabad
• 20% allocation for MMR

Upcoming Projects

Arvind SmartSpaces has a strong pipeline of projects scheduled for launch in the current fiscal year, including:

1. Bannerghatta Road, Bangalore
2. ITPL Whitefield, Bangalore
3. Orchard Phase 2
4. Industrial Park
5. Mankol
6. Potential projects in Surat and MMR

The company is confident in its ability to launch at least five projects this year, with a combined value of ₹3,000.00-4,000.00 crore.

Market Expansion

With the appointment of Priyansh Kapoor, who brings extensive experience in the MMR market, Arvind SmartSpaces is poised to accelerate its growth in this key region. The company is taking a measured approach to entering new markets, balancing aggressive growth with financial prudence.

Challenges and Focus Areas

As the company scales up, management has identified key areas of focus:

1. Execution: Ensuring timely and quality delivery of projects as the company grows
2. Profitable Project Acquisition: Continuing to find and secure projects that meet the company's profitability criteria
3. Successful Entry into MMR: Establishing a strong presence in the Mumbai market

Arvind SmartSpaces remains committed to its asset-light development model and disciplined capital allocation strategy as it pursues ambitious growth targets. With a strong leadership team in place and a robust project pipeline, the company is well-positioned to capitalize on the opportunities in India's dynamic real estate market.