Sunteck Realty inks pact to develop 50-acre land parcel in Vasind near Mumbai

MUMBAI: Realty developer Sunteck Realty has entered into an agreement with a local land owner to jointly develop around 50-acre land parcel in Vasind near Mumbai into an integrated residential township.

The company is planning to develop an integrated residential township under its brand ‘SunteckWorld’ on the plot that has a total development potential of 2.6 million sq ft. the project is estimated to generate revenue worth Rs 1,250 crore over the next 4-5 years.

This is the second land acquisition by the realty developer in the last four months.

In July, the company had entered into an agreement with a group of local landlords to develop a residential project on a 50-acre sea-facing land parcel in Vasai near Mumbai. Both the transactions are among the largest land transactions since the Covid-19 outbreak.

“The second strategic acquisition amidst the pandemic complements our strategy to strengthen our brand presence. This Vasind plot acquisition reflects our differentiated development philosophy of focusing on strategic locations along the growth vector,” said Kamal Khetan, Chairman and Managing Director, Sunteck Realty.

The proposed project on this land parcel will be largely residential, catering to the affordable segment. As per the revenue-sharing agreement, around 20% topline of the project will be shared with the landlord, while 80% will be retained by Sunteck Realty.

“Our momentum, both on sales and the execution front, has been increasing post the lockdown and we remain confident of capitalizing on the opportunity at hand. We will continue to reward our investors through acquisition of such value deals,” Khetan added.

Both the new land parcels will expand Sunteck Realty’s existing portfolio that focuses on city-centric developments spread over around 35 million sq ft spread across 26 projects.

According to a recent analysis by ratings agency ICRA, large property developers with established market positions, strong balance sheets and adequate liquidity have weathered the ongoing uncertain business environment caused by Coronavirus pandemic better than smaller entities.

Consequently, the ongoing consolidation of the sector is expected to accelerate further, with larger and more established players gaining increased market share.

Apart from Sunteck Realty, Godrej Properties is also leveraging its financial strength and brand equity to acquire land parcels and to tap consolidation opportunities through distress situations arising in the real estate sector due to the ongoing pandemic. Last week, Godrej Properties entered into an outright transaction to acquire a 15-acre land parcel in Bengaluru’s Sarjapur locality.