Desperate times in realty leading to unprecedented restructuring-IV

By: Ravi Sinha

Track2Realty Exclusive

Quality has suddenly become the buzzword in the realty sector to tide over the unprecedented crisis meet with the uncertain times ahead. Builders are now hiring quality surveyors, construction project manager, energy efficiency specialists and others who can get them quick buyers.

Removing the flab pronto is being discussed in boardrooms of these builders. Delhi-based Raheja Developers created verticals where each team looks at a particular project so that business can be closely monitored. The company plans to induct a CEO and an additional director on board.

“They will be directly involved in the day-to-day operation of the company like business development, operational monitoring of the project and finance,” said Navin Raheja, the CMD.

Mumbai-based Marathon Nextgen Realty has hired Hay Group to overhaul senior management and bring in cross-function expertise.

In the last four months it has identified 13 executives who will be trained on project management, purchases, contract execution, financial accounting and legal affairs. Mumbai, which is the largest real estate market, has seen 50% drop in sales.

“Since work is slow, 65% of working hours are spent on projects while 35% on being trained across functions,” said Chetan Shah, CMD of the company.

Unsold land-banks have forced some Mumbai-based developers to ask recruiters to get them fund managers who will help them sell the tracts. Property sales across top seven cities in the country have plunged due to higher interest rates and hardening of real estate prices.

Srinivas Nanduri, Partner Board & Leadership Hiring , Maxima Global Executive Search, has received four mandates from Mumbai-based developers to get fund managers on board. The unsold apartments, both constructed and under construction, in the Mumbai Metropolitan Region and the National  Capital Region range between 121 million sft and 233 million sft.

While for Chennai and Hyderabad, the inventory stands at 42.75 million sft and 33.38 million sft, respectively, says Liases Foras, a real estate consultancy. This sector is mostly family run and firms are looking to run it like a corporate.

Mantri Developers has got a new president and a strategic business unit head. “This is also to decentralise the business from the promoter’s hands and run the business in a professional manner,” said V Sridhar, Chief People Officer for the builder.