Sunteck Realty enters in JV for 7-acre land parcel at Borivali, aimed to generate revenue of Rs1,750cr; Stock zooms 4%

Sunteck Realty has entered into a joint venture to develop ~7-acre land parcel at Borivali (West) in Mumbai. The company will develop a luxury residential project in the upmarket residential locality. JLL India was the exclusive transaction partner for the JV.

Kamal Khetan, Chairman, Sunteck Realty said, "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."

Nishant Kabra, Senior Director & Head – Land and Development Services (West India), JLL India said, "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. Stronger brands should continue to observe aggressive sales going ahead."

As per the regulatory filing, acquired under the asset-light JDA model the residential project in the western suburbs of the city is spread across 7 acres and will have approximately 1 mn sq. ft of development potential.

It is expected to generate a project top line of around Rs1,750cr over the next 4-5 years further strengthening the cash flow and the balance sheet of the company.

Notably, the  project is likely to offer unobstructed views of the mangroves of Borivali and Gorai right up till the Global Vipassana Pagoda and beyond.

At around 12.11 pm, Sunteck is trading at Rs291.10 per piece up by 4.37% on Sensex.