The residential project’s topline goal for the developer is Rs 2,000 crore. The company has the potential to generate a topline of Rs 27,000 crore, thanks to a 6 lakh square foot building in Bandra and a 100-acre land bank in Thane.
According to Harmohan Sahni, CEO of Raymond Realty, we aim to concentrate on the residential real estate market and will shortly begin working in the commercial market.
In the Bandra micromarket in Mumbai, Raymond Realty intends to debut a high-end 2, 3, and 4-bedroom apartment complex with a topline of Rs 2,000 crore. Subject to clearances, the business intends to begin construction on the 0.6 million square foot project by the end of the current fiscal year, according to Harmohan Sahni, CEO of Raymond Realty.
Considering the 100-acre property block it has in Thane, close to Mumbai, the company has a topline potential of almost Rs 27,000 crore overall, including the Bandra project.
In 2019, the world’s largest textile company Raymond entered the real estate market by starting a residential development on its Thane plant property. The corporation has been turning a profit on the land bank since the facility was shut down more than ten years ago by building homes there.
According to the company, the 100-acre land piece it owns in Thane has a potential revenue of close to Rs 25,000 crore, of which Rs 9,000 crore has been launched and half of that has been booked. The company has started releasing residential projects with 1, 2, 3, 4, 5, and 6 BHK unit configurations as of 2019.
According to regional brokers, the cost per square foot in the Thane real estate market ranges from Rs 15,000 to Rs 25,000, depending on the neighborhood and other variables.
The saleable area of our Bandra project, which is about 0.6 million square feet, has a potential value of almost Rs 2,000 crore. A premium housing complex with 2, 3, and 4 BHK apartments is planned for this 5-acre property piece. The project is located in Bandra East’s Nirmal Nagar, and prices range. However, based on what I’ve heard, the Bandra East micromarket has witnessed pricing between Rs 40,000 and Rs 50,000 per square foot, Sahni told Moneycontrol.
“We intend to start the Bandra project in the current fiscal year, but it is once again pending approval. In addition to that, we are also open to more renovations of historic buildings in Mumbai or the Mumbai Metropolitan Region (MMR),” Sahni continued.
300 proposals evaluated
Sahni, who has been at Raymond Realty for a little more than two years, stated that the company has examined more than 300 MMR applications and has picked about six or seven projects on which it is now working. “We have put in bids for the redevelopment of ancient buildings in MMR, and we’re hoping for good news. We are also certain that we want to move forward with the collaborative development model, which entails working together with the landowner for development. However, this does not imply that we are not interested in blocked projects or slum redevelopment initiatives. We are receptive to them, but I wouldn’t say that we deliberately seek for stranded projects or slum rehab,” Sahni said.
He continued, “We are seeking for projects having a topline potential between say Rs 1,000 crore and Rs 4,000 crore, and we are targeting a 25 percent compound annual growth rate (CAGR) for the next four to five years. However, we also hope to continue concentrating on MMR for the next three to five years, at the very least.
No plans beyond MMR for now
Sahni claims that the business has no immediate plans to venture outside of the state. “I’d suggest that the idea is to stay within Maharashtra. Additionally, MMR offers a ton of opportunities. Bandra, Juhu, Mulund, Borivali, and numerous more micro-markets are available for us to pursue initiatives in the future, according to Sahni.
Data centres and warehousing
We are adamant that we want to concentrate on the home market and that we’ll soon begin working in the commercial sector. However, that will be a very small portion; as for the remaining portion of our residential developments, we are also working on a very small amount of retail. Furthermore, there are currently no intentions to enter the planned development, data center, warehouse, etc. There is a lot to do here, but for the time being, the company’s exclusive concentration is on residential real estate, according to Sahni.
“The corporation has a 300 crore rupee cash surplus, and there is no debt in the traditional sense. Currently, all of our investment comes from internal accruals, and there are no intentions to raise money from anyone. The land bank in Thane, in my opinion, represents our largest equity, Sahni said.