In yet another instance of consolidation in the real estate sector, luxury property developer Sunteck Realty Ltd., has acquired a prime project located near Lokhandwala, Andheri (West), Mumbai from Transcon Developers through a joint development agreement.
The project, which already has one completed tower, spreads over six acres of land has development potential of around 1.1 million sq.ft. in saleable area with revenues of around ₹3,000 crore in the next 4 to 5 years.
According to people familiar with the deal, it was not a distressed asset and is a win-win situation for both developers. The Sunteck brand would enhance the value of the project by getting a luxury tag, thus attracting the desired buyers.
The project swill be a mixed used project comprising luxury homes, commercial and retail space.
Sunteck will construct four more towers on the land, with two and three BHK luxury apartments, which will be priced over ₹3.5 crore each.
The city’s current real estate scenario gives an opportunity for trusted developers to maximize returns on unique opportunities in the market said Kamal Khetan, chairman and managing director, Sunteck Realty Ltd. “During a time of consolidation in the industry, this acquisition gives us a significant edge by expanding our portfolio and footprint in the Mumbai Metropolitan Region,” Mr. Khetan said.
“We believe in providing an outstanding product with a right mixed-use development that complements our premium portfolio and known strength in delivering the finest assets in a strategic location,” he said.
Given the location of the project, it is likely to attract buyers from mid-level businesses and professionals. “We look forward to creating homes that truly define luxury and bring in international class to the location. This will further augment our financial strength” said Mr. Khetan.
Sunteck will not have to invest much in this project as sales would provide the required liquidity for construction. The revenue will be divided in 54:46 ratio between Sunteck and Transcon.