Sunteck Realty, Transcon sign joint development deal for premium Mumbai project1 min read . Updated: 17 Sep 2019, 09:47 PM IST
- The mixed-development project has around 1.1 million sq ft of development potential and revenue projection of ₹2,500 crore in the next 4-5 years
- Mumbai’s current real estate scenario gives an opportunity for trusted developers to maximize returns on unique opportunities in the market
Bengaluru: Sunteck Realty Ltd has acquired a prime project in suburban Mumbai from Transcon Developers, where both will develop it through the joint development agreement (JDA) route, Sunteck said on Tuesday.
The mixed-development project has around 1.1 million sq ft of development potential and revenue projection of ₹2,500 crore in the next 4-5 years, the company said.
The project has been acquired under the asset-light JDA model, on a revenue sharing basis, focused on establishing a strategic tie-up with credible partners, which will further strengthen the cash flow and balance sheet of the company.
“During a time of consolidation in the industry, this acquisition gives us a significant edge by expanding our portfolio and footprint in MMR (Mumbai Metropolitan Region). We at Sunteck 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," said Kamal Khetan, chairman and managing director, Sunteck Realty.
Mumbai’s current real estate scenario gives an opportunity for trusted developers to maximize returns on unique opportunities in the market.
“...With distress in the market, around 50-60% developers are on the verge of collapse. The
demand may have come down, but the remaining developers, including Sunteck, who continue to construct and sell well, will get that remaining share of the market. Every micro-market has an ideal ticket size and we try and get that right," Khetan said in a telephonic interview.
Sunteck Realty has clearly demarcated its product offerings, and develops projects at different prices and under separate brand names. Its brand include its ultra-luxury projects under ‘Signature’, followed by luxury label ‘Signia’ and then ‘City’ and ‘Brand’.