Runwal Group Ventures into Slum Rehabilitation Realty Projects
Realty developer Runwal Group has ventured into redevelopment of old and dilapidated buildings and slum rehabilitation projects in the country’s financial capital Mumbai with an investment outlay of more than Rs 1,000 crore in this new business vertical for future growth and portfolio expansion. As part of this new growth strategy, the developer has acquired a 1-milliion-sq-ft slum rehabilitation project in central Mumbai’s Wadala locality from another real estate company. It has also acquired rights to redevelop a housing society in DN Nagar of Mumbai’s Andheri suburb and this project has potential of 2 lakh sq ft saleable area. “It’s a strategic decision for future growth as real estate projects involving redevelopment and rehabilitation are the mainstay of Mumbai’s property market given that the land-starved city has few vacant land parcels,” Saurabh Runwal, Associate director, Runwal Group stated. The proposed investment in this new business segment is estimated to generate revenues worth Rs 2,500 crore for the company. In addition to acquisition of two key projects in Mumbai’s Wadala and Andheri locality from existing real estate developers, the company is in advanced discussions for redevelopment of more than six housing societies across western suburbs of Mumbai and Thane. Apart from Mumbai, the company is looking to target other micro markets in the Mumbai Metropolitan Region including Thane, Navi Mumbai and extended western suburbs for such acquisition of projects and redevelopment rights. According to Runwal, better demand prospects, strong balance sheets and adequate liquidity are likely to enable larger developers to adjust to the new scenario better than smaller players, and offer more consolidation or inorganic growth opportunities to them.
Tags : News/Views Runwal Group slum rehabilitation Realty Projects Ventures