The company is eventually aiming to get 20 per cent of its revenues through rent it receives, Sahni said, adding an exit will also be considered over a period of time.
Raymond Realty on Tuesday announced plans to build one million sq ft commercial space here and specified that it will focus on the asset-light joint development of projects going ahead. The company, which de-merged from the textile major parent and has a sizeable tract of inherited land parcel in Thane, will build one million square feet of commercial space. It will include over 8 lakh sq ft of premium space to be rented out to companies, while the remainder will be a high street shopping space, its chief executive Harmohan Sahni said.
Sahni made it clear that the company is not targeting the IT-ITeS sector for the commercial space, but added that there is a lot of scope for getting such space rented out because Thane is the home to talent. The company is eventually aiming to get 20 per cent of its revenues through rent it receives, Sahni said, adding an exit will also be considered over a period of time.
The idea is to create commercial space in a way that propels the demand for residential housing as well, Sahni said while announcing a premium residential unit spread over 1 million sq ft adjacent to it. It can be noted that ever since shutting down its textile production at the facility, the company is already developing 3 million sq ft residential space, and 70 per cent of the launched space has already been booked.
Gautam Hari Singhania, Chairman and MD of Raymond, said people doubted the textile company’s ability to build and sell houses initially and assured that it will stick to the December 2022 deadline of delivering homes. Meanwhile, Sahni said that while there is a lot of scope for development at the land parcel in Thane, the company will be focusing on undertaking joint development projects on the residential side, where it will tie-up with a landowner and construct a facility with a revenue potential of up to Rs 2,000 crore each.
The focus will be on the Mumbai Metropolitan region and the company is also open to looking at mature redevelopment projects, Sahni said. It is currently examining multiple proposals on the joint development front, he added. The company’s focus is on the mid to premium segment of homes and is not looking at super-luxury dwellings anytime soon, Sahni said, pointing out that the ‘K-shaped’ recovery, which is underway, lends credence to such focus.
Meanwhile, the company on Tuesday said work on the 3-million sq ft residential phase in Thane has been on through the pandemic and also promised to adjust the advance payments done by homebuyers whose units were forfeited after booking due to financial constraints if they look to book a flat again