Business / Industry Sectors
Revival of Electra Real estate and PBC group in India: sold 219 apartments this year
Electra Real estate and PBC group's joint company, PBEL, holds a total of five common lands, with a total area of about 450 hectares, designated for residential and commercial real estate

After many years of silence, this Israel company has tried to increase the rate of its operations in India, and raise the awareness of the investors regarding the potential that they see in the subcontinent.


PBEL is PBC Companies and Electra Real Estate's joint venture in India. At a conference held in Tel Aviv, with more than 50 institutional investors and representatives of the major companies in the market, they presented numbers of the activities in the India market.


Electra Real estate and PBC group established PBEL in 2007, during the tide in the markets, as part of the expansion carried out by quite a few Israeli real estate companies in India, thanks to the potential they have identified there.  The first project the company launched in India was in August 2008 - Shortly before the collapse of the markets.


Further, the global economic crisis interrupted the plans of Israeli takeover of the Indian market, and many projects were canceled or were frozen. Investment of hundreds of millions of shekels went down the drain. Following the crisis, the joint company PBEL reduced its volume of activity, but continued to promote its projects in India in a measured manner. Today it is one of a few Israeli companies that continues operating in India, and is now hoping to enjoy the increase in demands there and to intensify its activities in the country.


According to the data presented, on all 400 units that the company sells, it writes a gross profit of US$10 million, representing a margin of 25%.


PBEL expects total revenues of US$ 103 million from the first phase of the project in Chennai.  Phases 2 and 3 in the Hyderabad project are expected to bring gross profit of US$ 26 million.


One benefit seen by PBEL operations managers is the fact that the company has no loans except support of the owners, and its financing activity in India is on an equity basis, with no leverage.


Source: Globes (Hebrew)


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