With Rs.5,000 crore, Sunteck Realty intends to raise the commercial portfolio.

By Abhay Shah, Realty Quarter

Realty Developer Sunteck Realty plans to spend as much as Rs.5,000 crore to build its portfolio, including offices and retail growth, in the next 3-4 years, says a top company official.

Around Rs.2,000 crore will be used to develop retail as well as commer#cial realty projects which will be transmitted of over 3 million sq.ft in Oshiwara District Centre (ODC), the state government’s new scheduled development in line with the central business district Bandra-Kurla Complex  (BKC).

Other than the 0.5 million sq.ft two office buildings which are presently under construction, the firm plans to construct 1 million sq.ft of new office space in an around BKC. All the projects, including 1 million sq.ft in the western suburbs of Naigaon, will be included in the suggested project.

“We are working towards building a powerful commercial real estate portfolio and Oshiwara District Centre will be an essential component of this. We are trying in the coming years to construct a $1.5 to 2 billion commercial and retail portfolio,” said Kamal Khetan, chairman & managing director, Sunteck Realty.

The organization plans to construct a portfolio with the goal of listing it as a Real Estate Investment Trust (REIT).  At this point, the firm will finance the development suggested through inner accruals, cash flows and debt if necessary.

“We have a powerful balance sheet, which can sustain additional leverage since it is less than 0.2 times our debt-equity ratio which is the smallest in the sector. Moreover, the current initiatives also produce solid cash flows,” he stated.

In ODC, which is a total area of 23 acres, the firm is developing around 3 million sq.ft of residential property and a similar quantity of commercial space as offices and retail centres.

Of the commercial development, Sunteck builds two towers of 1 million sq.ft buildings as office units, while the balance is to be built as a retail space. Apart from investments in the development of those projects, the firm may also invest in new land parcels for commercial and retail initiatives in the Mumbai Metropolitan Region, particularly the western districts.

The Mumbai Metropolitan Region Development Authority (MMRDA) has demarcated 160 acres of land in Oshiwara Business Center, in the western suburb of Goregaon, Mumbai, to establish a commercial district.

The Mumbai region planning and development agency is seeking to develop this special area in the direction of the swanky business district Bandra-Kurla Complex (BKC). The whole 23-acre project of Sunteck Realty in ODC will be finished in three to four years since most of this growth is already being built.