NEW DELHI: Signature Global expects to generate about ₹35,000 crore in free cash flow from its existing and planned portfolio, as it expands beyond housing into commercial real estate through a partnership with RMZ, according to chairman and whole-time director Pradeep Kumar Aggarwal.
In an exclusive interview with Ankit Sharma, Aggarwal said the company sees strong long-term potential in Gurugram’s Grade A office market and is using its RMZ tie-up to build a platform for large office developments. He added that the company’s low net debt position, expected to move close to zero after the transaction, gives it room to create long-term income-generating assets alongside its residential business.
Aggarwal also said Signature Global continues to see strong demand visibility in NCR despite some near-term softness after a sharp run-up in housing prices, and expects launches worth ₹40,000-50,000 crore over the next three years. While presales growth may normalise after a period of rapid expansion, he said the company’s focus is increasingly shifting towards execution, delivery and asset creation. Edited excerpts:
You recently announced a partnership with RMZ and are entering commercial real estate. What led to that decision, and why RMZ?
Demand for commercial space has changed in recent years. There is a clear preference for integrated developments where people do not have to travel long distances for work, retail, hospitality and daily needs. That broader mixed-use concept was the starting point for us.
The Southern Peripheral Road area in Gurugram is emerging as an important hub because of its connectivity to Golf Course Road, Dwarka Expressway and the Delhi-Mumbai Expressway. We believe this corridor can evolve into a major commercial destination.
The platform we have created with RMZ is through one of our group companies, where the leasable potential is around 5.5 million sq ft. RMZ has acquired a 50% stake, while Signature Global will retain the balance 50%. RMZ has invested around ₹1,283 crore in the company.
For us, RMZ brings established expertise in Grade A office development, while our strength is in residential. It is a complementary partnership. In NCR, branded Grade A office supply is still limited compared to the overall size of the commercial market, so we see a large opportunity there.
This is only a starting point. Over the next five years, we are looking at building 15-20 million sq ft of Grade A office space on this platform.
Until now, Signature Global was largely focused on Gurugram residential real estate. Does this commercial entry open the possibility of expanding into other cities?
When you explore a new market, access and local execution capability matter a lot. RMZ has deep experience in cities such as Bengaluru and Hyderabad, so this partnership gives us a gateway.
I would not say we are immediately opening a new market, but if suitable land parcels and the right opportunities emerge through this partnership, we are open to exploring them. Our cash flow is strong, and while NCR remains a large opportunity in itself, this tie-up does widen our future options.
Beyond commercial real estate, are you also open to entering retail, hospitality, education or other segments?
Within the mixed-use development we are already building, several components are present – office space, retail, hotel and even healthcare. So this gives us a live platform to understand how these segments perform with relatively limited risk.
If the model succeeds, it could open additional avenues. But right now, our strongest conviction is in Grade A office space. Demand from large occupiers and global capability centres has increased significantly. After the RMZ transaction, we have received a number of inquiries from large occupiers and facility managers interested in office space within these developments.
So yes, we are open to exploring more, but the immediate opportunity we see most clearly is in institutional-quality office assets.
Developers from South India and western India have increasingly entered NCR. How does that change the market dynamic, and was that one reason behind your move into commercial real estate?
Healthy competition is always welcome. Even now, I do not think NCR has the same degree of branded competition that you see in markets like Mumbai or Bengaluru. In NCR, the number of established branded players is still relatively limited.
At the same time, the opportunity is significant. Recent market trends show that NCR’s luxury housing market has, in some respects, outpaced Mumbai. That reflects the depth of demand.
I also see NCR differently. It is not just the NCR market, it serves as the broader CBD for much of North India. In Mumbai, the city itself remains the CBD. In NCR, many of the suburbs have effectively evolved into business districts in their own right. That gives locations like Gurugram an advantage.
Land availability and infrastructure are also stronger in these growth corridors, particularly due to projects like the Dwarka Expressway and the Delhi-Mumbai Expressway linkages. These are unlocking new zones for both housing and commercial development.
How has Signature Global performed in FY26, and what is the outlook from here?
Over the past few years, housing prices have risen sharply across India. At some point, the market was bound to pause, and that is what has happened. Affordability has come under pressure for buyers, so some near-term softness is visible. I see this more as a temporary adjustment than a structural issue.
Last year, we achieved more than ₹10,000 crore in presales. In the first three quarters of the current year, we have already crossed about ₹7,000 crore, and we expect to close the year at a healthy level.
But for us, the more important issue now is delivery. When you scale from around ₹1,600 crore of presales in 2021 to over ₹10,000 crore within a few years, that kind of growth cannot continue indefinitely at the same pace. A more sustainable annual growth rate of around 15% is healthier.
Instead of only giving one-year guidance, I think it is more relevant to look at the next three years. Based on our current portfolio, we expect launches worth ₹40,000-50,000 crore over that period.
You mentioned significant cash flow visibility from the current portfolio. How do you see that strengthening the company?
So far, we have delivered around 15 million sq ft, and another 50-60 million sq ft is either launched, under development, ready for launch, or in the pipeline. If I look at the overall value of this portfolio, the total revenue visibility is very large, and the free cash flow expected from it is around ₹35,000 crore.
That is important because long-term assets such as office developments improve the strength and stability of the company. Shareholders and stakeholders value that visibility.
Our balance sheet is already comfortable. Net debt is around ₹1,000 crore, and after the RMZ transaction, it should move close to zero. That is one reason this partnership made strategic sense for us. It gives us a chance to create a long-term asset base while continuing to grow in residential real estate.
