Sunteck Realty Strengthen Its Annuity Income Business

On April 02, 2024, one of the leading luxury real estate developers, Sunteck Realty Limited (SRL), announced that it entered into a long-term understanding/ agreement of its second premium commercial building at BKC Junction, Sunteck Icon to Bennett, Coleman & Co Ltd. As a result, the company is expanding the annuity income business of its commercial portfolio.

Sunteck Icon’s built-up size is roughly 2 lakh square feet, and its monthly leasing cost is roughly ₹300 per square foot based on carpet area. This will enable the business to make about ₹2,000 crore in income over the course of the next 29 years. Being the second building on BKC Junction for Sunteck—BKC51 was leased to Upgrad for 29 years in March—this is a significant turning point for the business.

“Building on the momentum of our 2023 success with the leasing of BKC51 to Upgrad, it is with great pleasure that we announce the successful deal of Sunteck Icon, our premium, world‐class commercial building with Bennett, Coleman & Co Ltd. The combined performance of the two rental assets is projected to yield an impressive average return of 30% on the invested capital. We envision more such developments in city‐centric prime locations and anticipate more such marquee transactions, thereby further solidifying our position as a leading developer in the real estate segment,” said Mr Kamal Khetan, Chairman of Sunteck Realty Limited.

Sunteck Realty has approximately 50 million square feet of projects in its pipeline, all of which are strong and diverse. By more than tripling its Gross Development Value (GDV) in less than three years to an astounding ₹30,000 crores in FY 2024, the company has accomplished an amazing feat. With a GDV of over ₹3000 crores, the company has announced the extension of its ultra-luxury residential portfolio into the most prestigious locales at Nepean Sea Rd and Bandstand-Bandra West.

About Sunteck Realty Limited

Sunteck Realty Limited is focused on developing premium residential and commercial properties across the Mumbai Metropolitan Region (MMR). On April 03, 2023, the shares of Sunteck Realty opened at ₹437.80 and touched the day high of ₹439.35 at 11:47 AM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.