Mumbai: Raymond Ltd on Wednesday stated it’s going to make investments ₹250 crore to expand its first residential venture in Thane close to Mumbai, marking its foray into the real estate sector.
Announcing the formation of the employer’s actual estate arm Raymond Realty, chairman Gautam Singhania said the residential challenge—spread over 20 acres in Thane—is a part of a larger plan to monetise the company’s legacy land holdings in the district.
Raymond owns a hundred twenty five acres of land in Thane and has been looking at ways to monetise the asset through conducting an outright sale or developing it in a phased manner.
“Our purpose is very clean—we need to monetise the land. We are looking at all alternatives to beautify shareholder value. This (growing the land) has been a piece in progress for a long term,” Singhania stated.
The 20-acre residential undertaking introduced Wednesday could be evolved in levels: the first will see construction of 3,000 mid-earnings housing devices in 10 42-storey towers unfold over 14 acres. Each of these residences will cost ₹1.06-1.25 crore. Raymond Realty plans to construct top rate houses inside the ultimate six acres.
The employer expects the mission to generate a sales of ₹three,500 crore in the first section with a profit margin of 25% in the subsequent 5 years.
“The undertaking could be in large part funded through revenue being generated by means of itself, ” stated Raymond CFO Sanjay Bahl. “Over and above that, we can invest ₹250 crore… A primary a part of it is already spent inside the making plans and obtaining approvals for the venture.”
Raymond has been looking to promote its Thane land for close to a decade now. It has been engaged in discussions with numerous huge developers for either outright sale of the land parcel or joint improvement with other developers. In 2012, Raymond became in talks with a nearby builder in Thane to sell a nine.Four-acre plot. The deal did now not take off.
Last year, Raymong again put up on sale 20 acres of land. Several worldwide buyers and developers, consisting of Canada Pension Plan Investment Board (CPPIB), Xander Group and Phoenix Mills have been said to have proven hobby in the land.