Sunteck Realty acquires land in Bandra Kurla Complex for commercial project
Sunteck Realty on Thursday said it has acquired a land parcel in Bandra Kurla Complex (BKC) here for developing a premium commercial project, which is expected to generate revenue to the tune of Rs 500 crore.
Sunteck Realty on Thursday said it has acquired a land parcel in Bandra Kurla Complex (BKC) here for developing a premium commercial project, which is expected to generate revenue to the tune of Rs 500 crore.
The city-based realtor has acquired the land through a joint development model to develop a premium commercial project in BKC with a development potential of around two lakh sq ft.
"Currently, there is a slowdown in the realty market. But we see some signs of revival not only on the residential side but also on the commercial front. Considering that most large corporates are consolidating their businesses in central business districts like BKC, we thought this was the right time to cash in on the opportunity," company's Chairman and Managing Director Kamal Khetan told PTI here.
He said that this project, which has a potential to generate Rs 500 crore revenue, will consolidates the company's position in the area.
The company already has three ultra-premium residential properties and two rented commercial assets in BKC.
Khetan said apart from outright acquisitions, the JV and JDA model for acquisitions as it enables it to acquire land parcels at a low cost and come up with premium real estate developments on it.
"Going forward we will continue to explore opportunities to acquire similar land parcels that will add value to the company," he added.
The company is also planning to soon launch another commercial project - Sunteck Centre II near BKC.
"We expect good demand in the BKC area, as our earlier two commercial projects have been consistently receiving a good response. Our residential projects -- Signature Island, Signia Pearl and Signia Isles -- in the heart of BKC have been receiving tremendous response so far," he added.
When asked whether the firm plans to focus on developing commercial assets he said, "We have nearly 16 acres land parcel in Goregaon (western suburbs) and some land in Sion and Kurla (central Mumbai), where we may look at developing commercial projects.
"We have adopted outright sell model where we construct the asset to suit the requirements of the customers and sell it, instead of renting it out. We will adopt the same model for these future projects as well," he added.
Currently, the company has five commercial projects out of which three are on rental model, while two have been developed on 'built-to-suit' basis and sold to the customers.
Meanwhile, Sunteck Realty reported a decline in net profit for the quarter ended June 30 at Rs 82.39 lakh as against Rs 84.19 lakh.
Its total income during the quarter reduced to Rs 24.6 crore from Rs 26.82 crore in the corresponding period last fiscal.
Source :- DNA
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