Ferns Estates & Developers, a Bengaluru-based real estate company that has entered the luxury hospitality business, is setting up properties that are close to nature and easy to reach.
According to Errol Fernandes, CMD of Ferns Estates & Developers, the company expects a revenue of Rs 363 crore in five years from the hospitality segment alone.
“We launch our first resort in Sakleshpur in 2021 – a luxury property spread over 100 acres with an investment of Rs 160 crore. Currently, there are 126 keys and we plan to expand the resort by adding another 76 keys. The estimated investment for this expansion is around Rs 50 crore.
Going forward, two more resorts are being set up in Coorg, one in a coffee plantation spread over 25 acres with an investment of Rs 60 crore and the other in Chikballapur, spread over 7 acres. “The best part is that all these places are within a day’s drive from Bengaluru, which was one of the goals of setting them up,” he added.
The company is also acquiring a resort in Goa. “In Goa, we have acquired 100-prime property for Rs 150 crore. It is on the verge of completion. We should be able to start operations in September 2023, Fernandes said. The property will be financed with a debt of about Rs 100 crore and a debt of Rs 50 crore from internal resources.
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The company, which has been in the real estate business for the last 34 years, has built gated communities, apartments and office spaces in Bengaluru.
“For our real estate arm, we do not intend to venture outside Karnataka; However, we are planning to move to tier-two cities like Mysore, Mangaluru and Hubli Dharwad. Initially, we are planning to set up gated communities and then later foray into apartments. At present we are looking for land. We are developing another vertical called Branded Plots in Sakleshpur,” said Fernandes.
In the case of gated communities, it is expected to grow at a rate of 20 per cent every year, and typically generate sales of around 5 lakh sq ft annually. Similarly, it sells around one lakh sq ft of apartment space annually and is expected to grow by 20 per cent, the CMD said.
Ferns Estates & Developers is expected to end FY23 with a revenue turnover of Rs 185 crore, of which Rs 40 crore will come from its hospitality division.