Sunteck Realty: Separate the men from the boys

Sunteck Realty is a Mumbai focussed real estate developer, catering to the ultra-luxury and luxury residential segment.

Sunteck has about 23 million square feet spread across 25 projects at various stages of development and 4 rented assets. Sunteck has completed 6 projects of about 2 mn sq. feet within 4 years.

“90% of builders in realty dying as they can’t cope with RERA,” Khushru Jijina, Piramal Finance.

Competitive Advantage:
– Mumbai focused developer
– Strong balance sheet & asset light model
– Strong land acquisition track-record in the post-Lehmann crisis years
– Projects with major capital allocation in BKC & ODC, Goregaon
– Differentiated branding helps command premium positioning
– Association with renowned partners such as Kotak Real Estate Fund and Ajay Piramal Group

BKC attracted prominent buyers such as banker Uday Kotak, actress Aishwarya Rai, former Citibank head Vikram Pandit, and former Deutsche Bank executive Gunit Chadha.

– Exit of unorganised deveopers and consolidation in the market

– Mr. Kamal Khetan has over 2 decades of experience in Real Estate industry
– Bet on undervalued pockets of land in a tough market
– Proven ability to predict growth areas ahead of the curve
– Acquisitions done during peak recession
– Ability to create strong long term partnerships with renowned partners

– Promoters hold 67% of the company
– Pabrai Funds hold 8.3% of the company
– Ajay Piramal holds 2.7% of the company

– Kotak Realty Fund is one of the major institutional share holder in the company with a board seat
– Sunteck is developing several projects in partnership with Ajay Piramal Group
– PE funds help in land acquisition

– In Oct 2017, Fidelity Funds bought 7 lakh shares of the company for ₹22.5 crore, or at ₹322 per share
– In Jan 2018, Fidelity Fund bought 12 lakh shares of the company for ₹48.7 crore, or at ₹405 per share

Making millions from marshes Read more: [Fortune India]

GST, RERA to benefit organised players:

3 opportunities where Sunteck Realty is betting on:

Sunteck Realty raises ₹650 crore via QIP:


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s