Sunteck Realty to buy 10 acre in Mumbai suburb for Rs 350 cr

MUMBAI: Realty developer Sunteck Realty has entered into an agreement to acquire over 10 acres land parcel in Goregaon suburb of Mumbai for nearly Rs 350 crore. The developer is also in talks with a private equity firm to join hands for the proposed development on this land parcel, said people familiar with the matter.

Sunteck Realty is looking to get financing of nearly $30 million initially through the private equity transaction. Officials of Sunteck Realty declined to comment.

Currently, a part of this land parcel is occupied by cattle sheds, while rest is a vacant plot. The developer can avail total floor space index of 2.75 on the plot following the recent hike in FSI for Mumbai suburbs, market experts said.

The land deal was in the making for almost 8-10 months as the company had signed a pact with the seller almost 10 months ago.

In Goregaon, the company already has one ongoing project Sunteck City priced at Rs 9,500 per sq ft.

Apart from undertaking projects independently, Sunteck Realty also has a joint venture with Ajay Piramal Group’s Piramal Realty that focuses on high-end realty projects in metros and select tier II cities in India and strategic overseas locations.

On Tuesday, shares of Sunteck Realty closed at Rs 246.90 on Bombay Stock Exchange, down 19.8% from previous close.