Sunteck Realty to develop 100 acre project
Realty developer Sunteck Realty has entered into a pact to jointly develop a nearly 100-acre land parcel into an affordable housing project on the outskirts of Mumbai. The land parcel owned by another local realty developer has total development potential of 10 million sq ft and is located in Naigaon, extended western suburb of Mumbai.
As per the area-sharing joint development agreement, Sunteck as the developer will get 74% the developed space, while the balance area will be given to the landlord.
Sunteck Realty, known for its premium residential projects, has recently formed a new vertical to explore the option of value housing in the backdrop of government’s thrust on affordable housing. The developer is planning to invest up to Rs 1,000 crore over the next two years to develop these projects. The developer will be launching this project under a new brand of aspirational homes in this new division.
“In support of the government’s initiative of ‘Housing For All by 2022’ we at Sunteck venture into aspirational homes segment to provide a one of a kind product in a potential expanse of 100 acres. We believe this segment is a key growth driver for the real estate industry, as it now enjoys higher affordability given the government support through interest subsidies,” said Kamal Khetan, CMD, Sunteck Realty.
The project is acquired under the asset light joint development agreement (JDA) model and has a potential of generating revenues of over Rs 5,500 crores with close to 1,500 crores realizable over the next two years. The project will be developed in phases over the next five years.
Sunteck Realty has so far been known to catering to luxury residential segment and has development portfolio of about 23 million sq ft spread across 25 projects.
After the Union Budget for 2017-18 granted infrastructure status to affordable housing along with few other measures, several developers have already ventured into this segment. The measures were aimed at encouraging companies to build more affordable housing, thus boosting supply and keeping prices in check. This has not only augmented the much-needed supply in this segment, but has also enhanced the sales velocity across all the property markets.