Orbit looks to redevelop land in South Mumbai

MUMBAI: Real estate company Orbit Corporation is looking to expand its project portfolio. The Mumbai-based company has identified four to five prime properties in South Mumbai for redevelopment and will aim to acquire them in the next couple of months. Orbit sold 23,000 sq ft land between April and June, compared with an average 16,000 sq ft it had been selling in the previous few quarters.

Revenue from fresh sales accounted for Rs 81 crore in the quarter, compared with Rs 85 crore for the financial year 2009. Overall sales grew 35% to Rs 110 crore in the quarter ended June 30, while net profit was almost unchanged at Rs 18 crore.

The revival in demand that began in mass housing is now spreading to premium segments as well, Orbit CFO Ramashrya Yadav told ET NOW. The company plans to raise up to Rs 350 crore by selling new shares to qualified institutional investors. The proceeds will help the company execute projects more quickly.

Orbit, which specialises in redevelopment, has a land bank of 3 million sq ft.