With an upswing in the commercial market, real estate firm Sunteck Realty Ltd (SRL) said it is looking to scale up its commercial portfolio.

“Currently, 80 per cent of our business interest is from residential segment and the balance from commercial.

“The commercial market as a category is showing recovery in prices and we see opportunity in developing it.

“There is uptake on the demand side both in the sale and rental. We expect commercial real estate to be about 40-50 per cent of our total real portfolio in next three to four years,” Kamal Khetan, CMD, told BusinessLine. Khetan said once it has a comprehensive portfolio in the commercial segment, it may also look at a REIT listing.

“We are developing a portfolio. We may look at REIT listings in three to four years. Depending on our cash flows, we will look at REIT,” he added.

Sunteck has presence in premium and luxury residential segment with close to 23 million sq feet spread across 25 projects and four rented assets.

“We command a premium in most of our projects. In our commercial project, we do a strata sale to maintain our cash flows,” he said, adding the company has projects in Goa and Nagpur as well.

Of the said portfolio, the company addedit has completed six projects with a developed area of about two million square feet comprising residential and commercial developments.

Khetan said that the company undertakes joint development and is in talks with various land owners.

“There are lot of distressed assets in the market. Joint developments and joint ventures are our preferred mode for expansions as it keeps our costs in control.

“We will continue to focus in the MMR region.

“We are currently engaged in talks with various land owners and may look at closing some deals soon,” he added.

Asked if the company was looking at affordable housing especially with the government announcing sops, Khetan said, “Everybody is talking but it is too early for me to comment on it”.