Raymond Ltd on Wednesday stated it would make investments of ₹250 crores to expand its first residential project in Thane near Mumbai, marking its foray into the actual property area.
Announcing the formation of the organization’s real estate arm Raymond Realty, chairman Gautam Singhania said the residential project—unfold over 20 acres in Thane—is a part of a bigger plan to monetize the company’s legacy land holdings inside the district.
Raymond owns 125 acres of land in Thane and has been looking at approaches to monetize the asset by accomplishing an outright sale or developing it in a phased way.
“Our intent may be obvious—we must monetize the land. We are looking in any respect options to beautify shareholder value. This (developing the land) has been a work in development for a long time,” Singhania stated.
The 20-acre private mission introduced Wednesday could be developed in two phases: the primary will see the construction of 3,000 mid-profit housing gadgets in 10 42-story towers spread over 14 acres. Each of these apartments will price ₹1.06-1.25 crore. Raymond Realty plans to construct top-rate houses within the last six acres.
The organization expects to generate sales of ₹3,500 crores within the first segment with a profit margin of 25% inside the subsequent five years.
“The assignment might be in large part funded via revenue being generated via itself, ” said Raymond CFO Sanjay Bahl. “Over and above that, we will invest ₹250 crores... A fundamental part of it’s far already spent in the planning and acquiring approvals for the task.”
Raymond has been seeking to sell its Thane land for close to a decade now. It has been engaged in discussions with several large builders for outright sales of the land parcel or joint improvement with different builders. In 2012, Raymond was in talks with a nearby builder in Thane to sell a nine.4-acre Plot. The deal did now not take off.
Last 12 months, Raymond once more put up on sale 20 acres of land. Several global buyers and builders, including Canada Pension Plan Investment Board (CPPIB), Xander Group, and Phoenix Mills, have been stated to have shown interest in the land.