Sunteck Realty is on a Rs 22,000-crore potential revenue path by launching seven projects in and around the Mumbai metropolitan region over the next five to eight years.
These projects are expected to make it one of the largest realtors in terms of the topline.
The realty firm has built the first uber apartment tower Signature in the heart of the tony central business district of BKC last decade and is now home to some of the biggest names in India Inc, such as Gautam Adani and Uday Kotak.
Suntech, over the past 18 months, has acquired land banks for five major residential projects in Vasai West, Vasind, Borivali West, Shahad in Kalyan and Pen-Khopoli. These projects have a development potential of 23 million sq ft and can fetch close to Rs 20,000 crore over the next seven to eight years, Sunteck Realty founder-chairman and managing director Kamal Khetan told PTI in a recent interaction.
That apart, it is also launching the next phases of the Sunteck World in the northwestern suburbs of Naigaon and Sunteck City at the Oshiwara district centre in Goregaon West. These projects have a revenue potential of Rs 2,000 crore over the next four-five years, said the first-generation entrepreneur Khetan.
He added that these projects can generate Rs 1,250 crore in topline in FY23 alone, while total revenue potential from the first phase of these projects will be Rs 3,400 crore.
Sunteck will be launching the first phase of these projects next fiscal, with the Vasai West and Shahad in Kalyan projects fetching Rs 1,150 crore each, Borivali West netting around Rs 900 crore and Vasind project selling for around Rs 200 crore, he said, adding the second phase of Sunteck City at Goregaon West has a revenue potential of Rs 750 crore and the new phase of the Sunteck World at Naigaon can generate Rs 500 crore in sales.
So, all in all, we are looking at launching inventory worth Rs 4,650 crore by the end of FY23, Khetan said, setting an incremental 30 per cent sales target for FY22 and FY23 and a pre-sales target of Rs 2,000 crore by end-FY23.
Khetan does not believe that the third wave of the coronavirus pandemic will scupper the realty sector following a strong pent-up demand now, as buyers who have been waiting for almost two years are active, nudged by lower interest rates and stamp duty cuts, and the record property registration being reported now from across the country.
Moreover, many states have ruled out complete lockdowns, therefore we expect the momentum to continue for the immediate future, he added.
Sunteck has been one of the largest acquirers of projects/land banks in the past 18 months, strengthening its presence in the MMR market and becoming one of the fastest-growing realty companies in megapolis.
Some of its recent land acquisitions include a marquee 50-acre land parcel at Shahad in Kalyan, which has the potential to develop 10 million sq ft of the integrated residential township and revenue potential of Rs 9,000 crore; a sea-facing 50-acre in Vasai West with a development potential of 4 million sq ft and a sales potential of around Rs 5,000 crore.
A waterfront plot for luxury residences at Vasind in Borivali West has the potential to develop 2.6 million sqft and bring in around Rs 2,000 crore in topline; and a river-front land parcel at the scenic Pen-Khopoli.
While the Vasai West will be mid-income units with 4.5 million sq ft of saleable area and a revenue of Rs 5,000 crore, the Vasind project is an affordable one offering 2.6 million sq ft of saleable space generating Rs 1,250 crore in sales; the Borivali West is a luxury project with 1 million sqft saleable area generating around Rs 2,000 crore, the Shahad will also be affordable offering 10 million sqft fetching Rs 9,000 crore of income and Pen-Khopoli will be developed as second homes, offering 5 million sq ft, generating Rs 2500 crore in topline.
These seven projects can sell 23 million sqft and generate around Rs 22,000 crore, Khetan said.
Meanwhile, the company had pre-sales of Rs 352 crore in Q3, up 29 per cent sequentially and Rs 800 crore in the first three-quarters of FY22.
Established in 2007, Sunteck boasts of a city-centric development portfolio of about 40 million sqft spread across 28 projects under five brands – uber-luxury Signature, ultra-luxury Signia, premium luxury Sunteck City, aspirational luxury Sunteck World and commercial & retail under Sunteck labels.