Gera Developments enters USA realty market with premium residential projects

Pune, February 9, 2022:  Gera Developments has expanded its footprint internationally with the completion of construction of two mixed-use condominium projects in San Francisco, California and the launch of sales.

Gera Developments through its wholly owned U.S.A. subsidiary, Outdo Inc. has invested in project SPVs that are developing these projects. Outdo Inc owns a 50% stake in each project. Both projects are located in the South of Market district in the immediate proximity of many technology companies including the headquarters for public companies Twitter Inc., Dolby Laboratories, Inc. and Square Inc. The first project is called 1288 Howard. Situated on Howard Street in San Francisco the project has 129 residential units comprising of studios, one- and two-bedroom flats, artist-style lofts and townhouses. The project also offers expansive street-level commercial and restaurant spaces spread over an area of 13,000 square feet. The second project, Le Centre is located at 42 Otis Street, San Francisco consists of 24 residential studios along with commercial space spanning over 3500 square feet.

Rohit Gera, Managing Director, Gera Developments said, “It is a matter of great pride for us to be amongst the very few Indian real estate developers expanding internationally especially by establishing a presence in California.  We are proud to announce the completion and launch of sales of our two very prestigious projects during our 50th year celebrations. This truly demonstrates our brand philosophy to constantly “Outdo” ourselves for our customers. We have learned a lot from the experience of developing projects in the most advanced market in the world.  We are confident that 1288 Howard Street and Le Centre will become landmarks in their micro-markets.”

Nikhil Gera, President, Outdo Inc.  said, “Our strong reputation and legacy, financial credibility and consistent sales growth coupled a high degree of customer centricity enabled us to look beyond India, our home turf. We have already started getting very positive customer feedback and response for these 2 projects and are confident of selling out these two projects per our targeted timelines. The total top line for these projects is approximately USD 150 million or Rs 1150 Crores, we anticipate achieving an average sales price of $1350 per square foot or Rs 1 lac per square foot and above. Examples of specifications not customary in India include 10-year construction defect warranties, acoustic dampening flooring, US leading California building energy efficiency standards, dual pane windows, EV chargers and car share programs. As we look ahead to 2022, we expect to continue expanding in California – a key growth market for us.”

Construction for both projects commenced shortly before the pandemic and continued throughout the pandemic because residential construction was treated as an essential service by the city of San Francisco. Therefore COVID lock downs did not stop or delay construction work. Also, the regulations for selling condominiums in California do not permit the sale and collection of construction progress payments during construction, like in India. Therefore, sales can only take place after the completion of construction. Consequently, all banks require projects to have 100% final closure prior to the start of construction.