Sunteck Realty Limited has entered into a joint development agreement with the landowner of a seven-acre land parcel at Borivali West in Mumbai where it plans to develop a luxury residential project. It expects a sales revenue of Rs 1,750 crore from the property over the next five years.
JLL India was the transaction partner for the joint venture (JV). The name of the landowner was not disclosed.
Acquired under the asset-light joint development agreement (JDA) model, the residential project in the western suburbs of the city is spread across seven acres and will have a development potential of approximately 1 mn sq. ft, the company said.
It is expected to generate a project top line of around Rs 1,750 crore over the next 4-5 years further strengthening the cash flows and the balance sheet of the company, it said.
The project is likely to offer unobstructed views of the mangroves of Borivali and Gorai right up till the Global Vipassana Pagoda and beyond.
“We are pleased to have entered this joint venture. Given the land parcel is overlooking the sea, this development shall provide an opportunity to curate a unique and world-class residential product consistent with the Sunteck brand. We shall bring in our best in class construction and development capabilities of luxury living. Our endeavour is to create a landmark development in this micro-market,” said Kamal Khetan, chairman, Sunteck Realty Limited.
"Mumbai western suburbs continue to remain one of the most dominant and active end-user residential markets in the country. Historically low home loan rates along with government incentives as well as rationalisation of prices by real estate developers have led to healthy ready inventory absorption in the past few quarters. As such, we feel the trend to percolate to newer launches and under-construction projects as well. Strong brands should continue to observe aggressive sales going ahead," said Nishant Kabra, senior director and head – Land and Development Services (West India), JLL India.
Borivali West, located in the western suburb of Mumbai, has transformed into a residential destination owing to good road/rail connectivity and social infrastructure. Beyond this, the upcoming metro line 2A connects Dahisar to DN Nagar and further to other parts of the city via multiple lines. The metro development along with the Coastal Road Project is also expected to transform this micro-market.