Listed Mumbai-based real estate firm Sunteck Realty Limited plans to invest Rs 2,500 to Rs 3,000 crore over a period of seven to eight years during the lifecycle of an integrated luxury residential township it intends developing on a 50-acre land parcel in Mumbai under the asset light joint development agreement model, Kamal Khetan, chairman and managing director, Sunteck Realty told Moneycontrol.
The 50-acre project is expected to see a potential development of approximately 1 crore sq ft (10 mn sq ft), the company said.
The project will be located in Shahad (Kalyan). The luxury integrated residential township in this location will be under the asset light JDA model with Amar Dye Chem Ltd. This would establish the company’s presence in the Eastern suburbs of Mumbai Metropolitan Region (MMR).
The project is expected to generate a top line of around Rs 9,000 crore over the next seven-eight years, further strengthening the cash flow and the balance sheet of the company. While Sunteck Realty has a very strong portfolio in the Western suburbs of the MMR, this project addition will strengthen the company’s portfolio in Eastern markets of the MMR as well, it said.
Since the first wave of COVID-19 in 2020, Sunteck has been the largest acquirer of highly value-accretive projects in the MMR - a trend it sustains even today. In fact, the company has considerably accelerated the acquisition momentum post the Second wave.
This will be the fourth acquisition by Sunteck since the advent of COVID-19 pandemic. Before the Shahad (Kalyan) project, the company has done three project acquisitions at Vasai, Vasind and Borivali, totaling around 8 mn sq. ft. and this project will add another around 10 mn sq ft, thus, adding in total 18 mn sq ft to Sunteck’s portfolio.
“We are happy to announce this value–accretive joint development plan with Amar Dye Chem Ltd. In-line with the trends seen post the pandemic, there is a growing demand for good peripheral locations around major metros," said Kamal Khetan, Chairman, Sunteck Realty Limited.
"Thus, we are pleased to announce our entry into MMR’s robust Eastern micro-market of Shahad (Kalyan). Market consolidation in favour of quality and well-funded real estate companies has been an ongoing trend and Sunteck has been a key beneficiary of this trend, continuously expanding its business portfolio with attractive return opportunities. We shall bring in our best-in-class construction and development capabilities and endeavor to create a landmark development in this micro-market,” he said.