Sobha Developers to foray into land selling biz

February 10, 2010

Encouraged by a good third quarter, Sobha Developers wants to pursue its asset monetisation and operational efficiency strategies aggressively.

The company wants to keep the asset monetisation option open through sale of land. “We don't mind buying land, creating a basic infrastructure, both legally and physically, and making it marketable,” said J C Sharma, managing director, Sobha Developers.

The company plans to look at it as a normal business activity. “Since we know how to buy land, we could also look at selling lands as a normal business activity,” Sharma added.

With sales picking up this year, the company's liquidity position too looks better. The company has sold 2.5 lakh sq ft in the first quarter, 3.9 lakh sq ft in the second quarter and 8 lakh sq ft in the third quarter, said Sharma. “Incremental sales have resulted in an improved liquidity position, and this coupled with improved cash flows has given us the comfort of not only meeting our obligation but also launch new projects,” Sharma added.

Meanwhile, the company plans to launch eight projects -- four in Bangalore, two in Coimbatore and one each in Chennai and Pune.