Mumbai real estate: Runwal Group plans to acquire 10 mn sq ft land for mixed-use development

Runwal Group plans to acquire 10 million square feet (msf) by the end of this financial year for mixed-use development, given the demand and is targeting an overall investment close to Rs 1,500 crore, Subodh Runwal, Managing Director at Runwal Group, told Maoneycontrol.

The company currently has close to 55 msf of land bank in Mumbai.

The revenue from sales last year was more than Rs 3,000 crore (fiscal year). The company is looking at a growth of 20 percent this year, he said.

“The acquisition process is currently on. We are looking at launching units in both the luxury as well as affordable housing segments and planning to expand to Pune as well,” Runwal said, adding the acquisition is expected to be funded through both internal accruals and institutional funding.

The company has launched projects in all three residential verticals – affordable, mid-segment and luxury. It has also ventured into commercial and retail segments.

“We have received a fantastic response for our affordable housing projects and we have been able to sell very fast in our Dombivli project at Runwal Gardens. In less than three years we have sold over 10,000 units,” he said, adding prices have also gone up by more than 20 percent. Going forward, we plan to acquire 10 msf in the last quarter of this calendar year for mixed-use development, given the demand,” Runwal said.

SRA projects

The company is also planning to foray into the SRA (slum rehabilitation projects) space.

“We are looking at doing some SRA schemes. We would be doing the pre-sale portion of it, which would be within the city limits (Mumbai),” he said.

The company is currently in the process of acquiring land. “Once that process gets over, we should be able to launch in the next six to nine months,” he said, adding that this is likely to be in the next fiscal.

Affordable Housing

The company is planning to launch an affordable housing project in the Mumbai Metropolitan Region (MMR), in areas such as Kalyan, and Dombivli. “This is expected to be launched in the last quarter of this year,” he said.

It plans to launch a project in the luxury segment in South Mumbai. “This is expected to be announced in the last quarter (this fiscal).”

Commercial projects

The company has created a separate vertical for its commercial business and is looking at developing close to 15 msf of Grade A space. “Land for this has been acquired and approvals are awaited. We are looking at doing more commercial projects within the city and in peripheral locations.”

The allocation of funds for the commercial projects would be spread over seven to eight years.

Acquiring new projects through the NCLT route

The company is also looking at acquiring a few projects through the insolvency route. “We are looking at these opportunities as well.” It has recently acquired one such project in South Mumbai. “It is a redevelopment project and is expected to be a development of close to 2.5 msf. “The project is still in the design stage. Construction is expected to begin next year and would be spread over a period of five years,” he said.