Raymond Realty plans to launch a premium 2,3,4 BHK apartments project in the Bandra micro-market in Mumbai and is targeting a topline of Rs 2,000 crore. The company plans to launch the 0.6 million sqft project by the end of the ongoing fiscal year, subject to approvals, Harmohan Sahni, CEO of Raymond Realty, told Moneycontrol.
Overall, including the Bandra project, the company has a topline potential of around Rs 27,000 crore, considering the 100-acre land parcel it owns in Thane, near Mumbai.
Textile major Raymond had ventured into real estate in 2019 by launching a residential real estate project on its factory land at Thane. The factory was shut over a decade ago and the company has been monetising the land bank by constructing residential units on it.
In the 100-acre land parcel the company has in Thane, it has a revenue potential of close to Rs 25,000 crore, of which Rs 9,000 crore has been launched, and half of that has been booked, according to the company. Since 2019, the company has launched residential projects having a configuration of 1,2,3,4,5,6 BHK apartments.
The per sqft price in the Thane real estate market is anywhere between Rs 15,000 to Rs 25,000, depending on the locality and various other factors, according to local brokers.
Bandra project
“The Bandra project that we have has around Rs 2,000 crore potential and the saleable area is around 0.6 million sqft. The 5-acre land parcel here is a redevelopment project and will be a premium housing project, having 2,3,4 BHK apartments. The project is in Nirmal Nagar in Bandra east and on the pricing end, it varies. But from what I know, the Bandra east micro-market has seen pricing of around Rs 40,000 to Rs 50,000 per sqft," Sahni told Moneycontrol.
“We are planning to launch the Bandra project in the ongoing fiscal, but it is again subject to approvals. Apart from it, we are also open for more old-building redevelopments in Mumbai or the Mumbai Metropolitan Region (MMR),” Sahni added.
Also read: Raymond Realty further expands in Thane; estimates Rs 2,000 crore revenue potential
300 proposals evaluated
Sahni, who has completed a little over two years at Raymond Realty, said that the company has evaluated more than 300 proposals in the MMR and has shortlisted around six or seven projects on which it is working currently. “We have submitted bids for redevelopment of old buildings in MMR and are awaiting something positive from there. At the same time, we are clear that we want to go ahead with the joint development model (partnering with the land owner for development). But this does not mean we are not open to slum rehabilitation projects or stuck projects. I would say we are not looking for stuck projects or slum rehab actively, but are open to them,” Sahni explained.
He added, “We are targeting a 25 percent compound annual growth rate (CAGR) for the next four to five years, and are looking for projects having a topline potential between say Rs 1,000 crore and Rs 4,000 crore. But at the same time we are looking to remain focused on MMR for the next three to five years at least.”
No plans beyond MMR for now
According to Sahni, the company does not have plans to go beyond the state right away. “I would say the thought is to not go outside Maharashtra. In MMR also, there is so much opportunity. We have Bandra, Juhu, Mulund, Borivali and many more micro-markets where we can take up projects in the future,” Sahni said.
Data centres and warehousing
“We are clear that we want to focus on the residential segment and are also going to start with commercial soon. But that will be very little; the rest, we are also doing a little of retail, but again very little in terms of number, as a part of our residential projects. Further, there are no plans to get into plotted development, data centres, warehousing, etc., at the moment. The company's focus is purely on residential real estate for now, and there is a lot to do here,” said Sahni.
Also read: Raymond group enters real estate; launches Rs 3,500 crore maiden project in Mumbai
Debt
“The company has a cash surplus of Rs 300 crore and there is no debt as such. There are no plans to raise money from anywhere right now, and all our investment currently is from internal accruals. I would say that the biggest equity we have is the land bank in Thane,” Sahni concluded.
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