Century Textiles - Birla Estates seen a Growth Engine

By Research Desk
about 2 months ago

Century Textiles, with an aim to deliver exceptional and premium home and office spaces, entered into the realty sector, largely to develop land parcels owned by Century, as also, to have JV projects in Mumbai, Pune, Gurugram and Bengaluru. Century in its Investor Presentation sent to BSE last week, gave a blue print on Realty Division as well, along with its Pulp & Paper and Textile Division.  

Century is owning 2 completed Commercial Projects at Worli, Mumbai, leased out for Rs 125 crore annual rent, estimated to have NPV of Rs. 1,800 crore. Birla Aurora is a 22 storey, with 2.6 lakh sq, ft, while Birla Centurion is a 13 storey, with 3.5 lakh sq. Ft, fully leased out.

Under Construction and Development, Century has 3 projects. Birla Vanya at Kalyan, is being developed on company owned land of 22 acres, with slaeable area of 13.1 lakh sq feet. Birla Alokya, is developed at Whitefield, Bengaluru, on company owned land of 8 acres, with saleable area of 5.5 lakh sq. ft. Birla Navya at Gurugram is developed on 65 acres land, with saleable area of 36.5 lakh sq. ft.

Most intersting part is launch of Worli project in FY 22, on 30 acres of land, with saleable area of  34 lakh sq. ft residential ( to be fully sold on ownership basis) and commercial of 8 lakh sq. Ft , (to be owned by the company and leased out on completion). This will take Century in big league amongst Mumbai develoepers.

However, it is intriguing, that presentation in its page heading is writing “over 36 lakh sq ft. Under construction across 3 projects”, while summary narrates it at 47.2 lakh sq ft. Also, selling rate for residential at Worli is estaimated at Rs. 29,400 per sq. ft, while similar project, on launch can fetch Rs.35,000 per sq. ft on most reasonable basis. Even 2 projects at Bengaluru is spelled as Bangaluru. This need to get corrected, to give a corporate look in its presentation.

In nutshell, Century is on the take off stage to monetize its land parcels, which can largely get captured in the next 3 years, by over Rs. 10,000 crores.
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