Sunteck Realty has acquired a 16-acre plot at Goregaon for Rs 300 crore, which realty experts have called a bargain deal and an indication of the slowdown in land prices.
Kamal Khetan, chairman and managing director, Sunteck Realty, said, “We took advantage of the bad market and struck a good bargain.”
Half the amount of the acquisition – Rs 150 crore – has been borne by Kotak Private Equity Group. Sunteck struck the deal at Rs 18.75 crore an acre, which is considered reasonable in terms of viability of the project.
Pankaj Kapoor, director, Liasas Foras India Limited, a real estate research firm, said, “The land price determines the viability and the company will make good profits.” He attributed the recent changes in Development Control Rules (DCR), which stopped the tweaking of rules that used to be exploited by builders. Currently, realty rates at Goregaon are in range of Rs 10,000- Rs 12,000 a square foot.
Sunteck already has six acres 200 metres from this plot, taking its current land bank in the area to 23 acres.
Sunteck plans to construct predominantly residential complexes with a small portion also kept aside for commercial and retail activity.
Khetan said the project would be completed within five years. “We will construct luxury apartments with all modern amenities and are sure of changing the skyline of Goregaon,” Khetan said.
But Kapoor rues the fact that the focus will be on luxury housing. “Affordable housing will remain a dream as developers continue to construct luxury apartments that sell at premium prices,” Kapoor said.