Sunteck Realty to develop 10 million sqft residential project in Kalyan, Mumbai; Stocks hit 52-week high

Revenue potential seen at approx. Rs9,000cr.

Sep 16, 2021 02:09 IST India Infoline News Service

Sunteck Realty Limited stocks hit 52-week high at Rs449 per piece after it has informed that the realty major plans to develop a marquee ~50-acre land parcel at Shahad (Kalyan). The company would develop an aspirational luxury integrated residential township in this location, under the asset light JDA model with Amar Dye Chem Ltd.

This would be another exceptional acquisition by the company, establishing its presence in the Eastern suburbs of Mumbai Metropolitan Region (MMR).

The project is expected to generate a top line of around Rs9,000cr over the next 7-8 years, further strengthening the cash flow and the balance sheet of the company.

While Sunteck Realty has a very strong portfolio in the Western suburbs of the MMR, this project addition will strengthen the company’s portfolio in Eastern markets of the MMR as well.

Since the first wave of COVID-19 in 2020, Sunteck has been the largest acquirer of highly valueaccretive projects in the MMR - a trend it sustains even today. In fact, the company has considerably accelerated the acquisition momentum post the 2nd wave. This will be the fourth acquisition by Sunteck since the advent of COVID-19 pandemic.

Before the Shahad (Kalyan) project, the company has done three project acquisitions at Vasai, Vasind and Borivali, totaling ~ 8 mn sq. ft. and this project will add another ~10 mn sq ft, thus, adding in total 18 mn sq ft to Sunteck’s portfolio.

“We are happy to announce this value –accretive joint development plan with Amar Dye Chem Ltd. In-line with the trends seen post the pandemic, there is a growing demand for good peripheral locations around major metros. Thus, we are pleased to announce our entry into MMR’s robust Eastern micro-market of Shahad (Kalyan).

Market consolidation in favor of quality and well-funded real estate companies has been an ongoing trend and Sunteck has been a key beneficiary of this trend, continuously expanding its business portfolio with attractive return opportunities. We shall bring in our best-in-class construction and development capabilities and endeavor to create a landmark development in this micro-market,” said Kamal Khetan, Chairman, Sunteck Realty Limited.

At around 2:25 PM, Sunteck Realty was trading at Rs428.25 apiece up by Rs1.55 or 0.36% on Sensex.

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