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In a recent announcement, Subodh Runwal, the Managing Director of Runwal Group, outlined the company's ambitious plans for the current financial year, aiming to acquire 10 million square feet for mixed-use development. This strategic move, driven by escalating demand, is backed by a substantial investment close to Rs 1,500 crore.
The company presently boasts an impressive land bank of nearly 55 million square feet in Mumbai, reflecting a robust foundation for its future expansion plans. With revenue exceeding Rs 3,000 crore in the last fiscal year, Runwal Group is setting its sights on a 20% growth for the current year.
The ongoing acquisition process, according to Runwal, is geared towards launching units in both the luxury and affordable housing segments. Diversifying its portfolio, Runwal Group has made significant strides in the residential sector, covering affordable, mid-segment, and luxury categories. Moreover, they have ventured into commercial and retail segments, emphasizing a comprehensive approach to real estate.
Expressing satisfaction with the positive response to their affordable housing projects, Runwal highlighted the success of their Dombivali project at Runwal Gardens, where over 10,000 units were sold in less than three years, accompanied by a price surge of over 20%.
Notably, the company is eyeing expansion into Pune, with funding anticipated from a combination of internal accruals and institutional sources. Alongside, the company is also geared up to enter the slum rehabilitation projects (SRA) space. Runwal mentioned their focus on the pre-sale portion of SRA schemes within Mumbai's city limits. The land acquisition process is currently underway, with plans to launch in the next six to nine months, likely in the next fiscal year.
For the affordable housing sector, a new project is on the horizon in the Mumbai Metropolitan Region (MMR), covering areas such as Kalyan and Dombivali, with an expected launch in the final quarter of this year. Additionally, a luxury segment project in South Mumbai is expected to be unveiled in the last quarter of this fiscal year.
In a bid to diversify further, Runwal Group has established a distinct vertical which is focused on the commercial sector. Plans include the development of approximately 15 million square feet of Grade A space. While land acquisition is complete, the projects await approvals. The financial allocation for these commercial projects will span over seven to eight years.
Runwal Group's foray into projects through the insolvency route is a strategic move, with the recent acquisition of a redevelopment project in South Mumbai. Spread across 2.5 million square feet, this project is in the design stage, with construction slated to begin next year, extending over a five-year period.
As Runwal Group diversifies and expands across various real estate segments, its strategic vision aligns with meeting the dynamic demands of the market and ensuring sustained growth in the real estate landscape.
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