Mumbai-based listed real estate developer Keystone Realtors, which operates under the Rustomjee Group brand name, and is focused on Mumbai and surrounding areas, has 22 projects in the pipeline with a potential 37 million sq ft of saleable area with gross development value (GDV) of Rs 35,000 crore, the company stated in its annual report for 2022-23 shared in an exchange filing.
"Our robust business development pipeline ensures consistent y-o-y (year-on-year) growth in new project additions, supported by ample liquidity. Currently, we have 13 ongoing projects having saleable area admeasuring 4.94 million sq ft, and 22 forthcoming projects having a GDV of Rs 35,000 crore," Boman Irani, chairman and managing director of Keystone Realtors, was quoted as saying in the annual report.
"Given our healthy launch pipeline, we are working towards achieving presales growth of 25 percent y-o-y over the next 3-5 years. The management’s aim has been to improve our presence in the mid-mass and aspirational segments as these are the largest and fastest-growing segments in the MMR (Mumbai Metropolitan Region)," Irani added.
"During the year, the company was selected as a preferred partner for the redevelopment of five projects. These additions are in line with our asset-light strategy. Further, 85 percent of these additions in terms of GDV are from mid-mass and aspirational segments," Irani further added.
Track record
“Over the last 27 years, the company has delivered 20-plus million sq ft of development with 15,000-plus homes across the length and breadth of the city (Mumbai). We have a healthy pipeline of 37-plus million sq ft of ongoing and forthcoming projects. Rustomjee takes great pride in the fact that it has helped customers across market segments (from affordable to super-premium) to realise their dream of owning a home in Mumbai,” the company said in the report.
Q1FY24 results
The company had on August 7 reported its best first-quarter pre-sales of Rs 500 crore, representing a yearly growth of 106 percent. The company reported that net debt in the quarter to June 30 reduced by Rs 70 crore, leaving zero red in on its books. Its profit after tax Q1FY24 stood at Rs 50 crore, down from Rs 70 crore in the first quarter of FY24.
The Mumbai-based company reported collections of Rs 490 crore, representing a 23 percent growth over Q1FY23. Keystone Realtors was listed last year following its Rs 635-crore initial public offering (IPO).
Redevelopment of old buildings to be focus
The company plans to develop more time and resources in rehabilitating dilapidated buildings in MMR that house multiple families, locally known as chawls, apart from revitalising slums. "Redevelopment continues to be our strong focus area. Being one of the largest brands in this space, we have rehoused over 1,400 families so far," the company said in its annual statement.
It added, "Amidst Mumbai's burgeoning population and it being a landlocked city, the imperative for redevelopment is even more pronounced. Deteriorating buildings, inadequate amenities, and urban congestion demand a transformative approach. Redevelopment offers a sustainable solution, revitalizing the city's landscape, optimising land use, and ensuring improved living conditions."
Also Read: Rustomjee Group plans invest Rs 1,000 crore by the end of the next fiscal in MMR: MD Boman Irani
At the time of its IPO in November 2022, Irani had said that 70 percent of the company’s future supply will be in the Rs1-7 crore segment in context of residential real estate. “We are growing our strength in Thane. In Mumbai, we will not spread everywhere but stay in areas where we are strong and continue to study markets in MMR,” Irani had said.
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