NEW DELHI: Signature Global anticipates generating approximately ₹35,000 crore in free cash flow from its current and future portfolio as the company expands into commercial real estate in partnership with RMZ, according to Chairman and Whole-Time Director Pradeep Kumar Aggarwal.
In an exclusive interview with Ankit Sharma, Aggarwal highlighted the company’s confidence in the long-term potential of Gurugram’s Grade A office market and how the RMZ collaboration aims to establish a robust platform for substantial office developments. He noted that their low net debt position, projected to approach zero following this transaction, provides the opportunity to develop long-term, income-generating assets alongside their residential ventures.
Aggarwal further stated that despite some short-term softness due to a significant rise in housing prices, Signature Global continues to see strong demand visibility in NCR, with anticipated launches worth ₹40,000-50,000 crore over the next three years. While presales growth may stabilize after rapid expansion, the company is increasingly focused on execution, delivery, and asset creation. Edited excerpts:
You recently announced a partnership with RMZ and are venturing into commercial real estate. What prompted this decision, and why RMZ?
Demand for commercial space has evolved significantly in recent years. There is a growing preference for integrated developments where people can access work, retail, hospitality, and daily needs without long commutes. This mixed-use approach served as the foundation for our decision.
The Southern Peripheral Road area in Gurugram is becoming a pivotal hub due to its connectivity to Golf Course Road, Dwarka Expressway, and the Delhi-Mumbai Expressway. We believe this corridor has the potential to develop into a major commercial destination.
The platform we have created with RMZ, through one of our group companies, has a leasable potential of around 5.5 million sq ft. RMZ has acquired a 50% stake, with Signature Global retaining the remaining 50%. RMZ’s investment in this partnership amounts to approximately ₹1,283 crore.
For us, RMZ provides established expertise in Grade A office development, while we bring strength in the residential sector. This partnership is complementary. In NCR, branded Grade A office supply remains limited compared to the overall commercial market, presenting us with a significant opportunity.
This is just the beginning. Over the next five years, we aim to develop 15-20 million sq ft of Grade A office space on this platform.
Until now, Signature Global was primarily focused on Gurugram’s residential real estate. Does this move into commercial open doors to other cities?
When entering a new market, accessibility and local execution capabilities are crucial. RMZ has extensive experience in cities like Bengaluru and Hyderabad, providing us with a valuable gateway.
While we are not immediately expanding into new markets, we are open to exploring suitable land parcels and opportunities that may arise through this partnership. Our solid cash flow supports this approach, and although NCR presents a substantial opportunity, our collaboration does broaden our future possibilities.
Apart from commercial real estate, do you also consider entering retail, hospitality, education, or other sectors?
Within the mixed-use developments we are currently creating, we include various components like office space, retail, hotels, and healthcare. This allows us to assess performance across these segments with relatively low risk.
If this model proves successful, it could pave the way for further ventures. However, our primary focus remains on Grade A office spaces, as the demand from large occupiers and global capability centres has significantly increased. Following the RMZ transaction, we’ve received numerous inquiries from major occupiers and facility managers interested in office spaces within these projects.
Therefore, while we are open to exploring additional avenues, the immediate opportunity we see most clearly lies in institutional-quality office assets.
Developers from South and Western India are increasingly entering NCR. How does this impact the market dynamics, and was that a factor in your move into commercial real estate?
Healthy competition is always welcome. Currently, I believe NCR does not have the same level of branded competition seen in markets like Mumbai or Bengaluru. The number of established players in NCR remains relatively limited.
At the same time, the potential is significant. Recent trends indicate that NCR’s luxury housing market has, in some respects, outperformed Mumbai, demonstrating strong demand.
I perceive NCR differently. It serves not only as the NCR market but also as the broader CBD for much of North India. In Mumbai, the city itself serves as the CBD. In NCR, numerous suburbs have effectively transformed into distinct business districts, providing Gurugram with a competitive edge.
Land availability and infrastructure are stronger in these growth corridors, especially with projects like the Dwarka Expressway and Delhi-Mumbai Expressway linkages unlocking new areas for both housing and commercial development.
How has Signature Global performed in FY26, and what is the outlook going forward?
In recent years, housing prices have surged across India, leading to an inevitable market pause. Affordability concerns for buyers have resulted in some short-term softness, which I view as a temporary adjustment rather than a structural problem.
Last year, we recorded over ₹10,000 crore in presales. In the first three quarters of the current year, we’ve already surpassed ₹7,000 crore and anticipate closing the year at a healthy figure.
However, the priority now is on delivery. Scaling from presales of around ₹1,600 crore in 2021 to over ₹10,000 crore in just a few years cannot be sustained at that pace indefinitely. A more sustainable annual growth rate of approximately 15% is far healthier.
Instead of focusing solely on one-year forecasts, we should look at the next three years. Based on our current portfolio, we anticipate launches worth ₹40,000-50,000 crore over this period.
You mentioned considerable cash flow visibility from the current portfolio. How will that strengthen the company?
So far, we’ve delivered around 15 million sq ft, with another 50-60 million sq ft either launched, under development, or in the pipeline. The overall value of this portfolio offers substantial revenue visibility, with free cash flow projected at about ₹35,000 crore.
This is crucial because long-term assets like office developments bolster the company’s strength and stability, enhancing value for shareholders and stakeholders.
Our balance sheet is also in a healthy state, currently reflecting a net debt of around ₹1,000 crore, which should approach zero following the RMZ transaction. This strategic partnership allows us to build a long-term asset base while continuing our growth in residential real estate.
