Not planning to raise more funds for Sunteck City:Sunteck Realty

Sunteck Realty has provided an exit option to Kotak Realty Fund from its Goregaon project — Sunteck City, which is spread over 23 acres. Kotak Realty Fund had invested Rs 150 crore during acquisition of 16 acre land in 2012. The company gave Kotak Realty Fund an exit at an internal rate of return, or IRR, of 22 percent in less than four years.

Kamal Khetan, CMD, Sunteck Realty, says post the Kotak exit, Sunteck City is a 100 percent subsidiary of Sunteck Realty and the company is not planning to raise any further funds for this project.

Khetan says the company has already sold inventory worth Rs 550 crore of the project.Below is the transcript of Kamal Khetan’s interview with Reema Tendulkar and Nigel D’souza on CNBC-TV18.Reema: This is in reference to your recent announcement that you have provided an exit to Kotak Realty Fund in your Goregaon project with an internal rate of return (IRR) of 22 percent. That is pretty hefty. Now Kotak has exited it completely. Could you walk us through what the potential is of your Goregaon project and are you looking to get in another player?A: We have given a full exit to Kotak. We have given approximately Rs 270 crore and now the total 100 percent of the upside will come through the company and whatever we do. So, it is now a 100 percent subsidiary of Sunteck. So, we are planning to not raise any further funds right now from this project at least right now.Nigel: I believe that the project is known as Sunteck City. What exactly is the plan in terms of this? When will the project get completed? I think you have already launched phase-I, phase-II. Could you run us through those details?A: This Sunteck City is totally 23 acres, which is 7 plus 16 acres so 23 acres. Avenue I and Avenue II -- that is phase-I and phase-II -- we have launched and from that we have already sold the inventory close to Rs 550 crore and right now we are looking at launching another part of the phase-I and phase-II.Reema: You have already sold inventory worth Rs 550 crore. How much more to go? What is the total value of the project and when will you be realising the remaining?A: Total area, here it is 23 acres that we are looking at. We will be able to construct 6-7 million square feet from here and this will be a total mixed development of residential, commercial and retail. Out of this, 6-7 million square feet that we will be developing, 3-4 million square feet will be residential and the balance will be commercial and retail.For entire discussion, watch accompanying video...