Sunteck Realty Ltd (SRL), is engaged in the development of residential and commercial properties. The company undertakes its projects primarily under JV’s and JDA’s with landowners. SRL’s developmental activities mainly cover Mumbai Metropolitan Region, apart with some exposure in Tier-II cities such as Jaipur, Nagpur and Goa.
SRL plans to construct annuity assets that can generate Rs4bn-Rs4.5 bn of rental income by FY22-23 with a potential for a subsequent REIT listing is a prudent strategy. SRL‟s recent fund raising of Rs6.5bn (Rs 5bn through QIP and Rs1.5bn from promoter) will help it comfortably fund its initial capex for Avenue 5 (Phase 1 of commercial) with balance capex to be funded through internal accruals from the residential portion of Oshiwara District Centre (ODC) and debt.