A trendsetter in creating iconic destinations with sophisticated design and state-of-the-art amenities such as Signature Island, Signia Isles and Signia Pearl, Mumbai-based Sunteck Realty focuses on a city-centric development portfolio of about 52.5 million sq ft spread across 32 projects. Kamal Khetan, Chairman and Managing Director, Sunteck Realty, shares more on the company’s projects, prospects and plans in conversation with R SRINIVASAN. Excerpts: You have projects in the heart of Mumbai; in the Eastern suburbs as well as Naigaon in the Western suburbs. So how do you select locations for your projects? Sunteck Realty is known for luxurious real-estate developments across MMR and we aim to cater to a diverse range of income groups while maintaining a high luxury quotient. Thus, our developments span both the posh localities of the city and the emerging suburbs of MMR where we see potential. Our current portfolio includes high-end projects that include uber-luxury and ultra-luxury residences, mixed-use premium luxury developments, marquee luxury developments as well as aspirational luxury townships. For selecting geographic locations, we employ a strategic approach through rigorous research. This strategy involves penetrating micro-markets within MMR where there is an opportunity for lifestyle upgrades and the location strategically benefits from infrastructure developments currently underway to enhance connectivity. This approach of Sunteck meets the aspirations of different income groups and allows us to redefine skylines across the MMR by developing luxurious residential destinations that strategically align with infrastructural developments to optimise the benefits for residents. Sunteck has increased its gross development value (GDV) to over Rs.301 billion. Also, it has a great track record of one of the lowest net debt or equity ratios. Please share more. Cumulative cash flows over the past four years (FY21-24) have been Rs.43 billion + with a cumulative collection efficiency of ~74 per cent. While collections have been strong, the cumulative net cash flow surplus during the same period till 9MFY24 stands at Rs.12 billion + with a margin of ~30 per cent on collections. This shows that the company is operating at a healthy margin level and it has allowed the company to reduce its debt. The company received the prestigious five-star rating from the Global Real Estate Sustainability Benchmark (GRESB) in its second year of submission with a strong score of 95. What is the difference in certification between IGBC and GRESB? IGBC offers green building certification at the project level whereas GRESB provides a corporate-level certification. GRESB is recognised globally as an ESG (environmental, social and governance) standard applicable to the real-estate and infrastructure sectors. For project-level green building certification, the company has partnered with EDGE, an initiative by the IFC-World Bank Group, eliminating the need for IGBC certification. Currently, eight ongoing Sunteck projects are certified under the EDGE programme, affirming the company’s commitment to sustainable development. What green elements have been incorporated in your Crescent Park project? Sunteck Crescent Park is our premium luxury development, which has been meticulously designed to prioritise energy efficiency and reduce its carbon footprint. This approach not only supports environmental sustainability but also ensures that home buyers enjoy the benefits of green living while enjoying the luxury quotient of the development. Under the EDGE certification, this initiative includes a comprehensive array of sustainable elements: Rainwater harvesting to optimise water usage and reduce runoff Solar water heating, decreasing electricity or gas usage Energy-efficient lighting that consumes less power without compromising on brightness Energy-efficient glass to minimise heat gain, reducing the need for air-conditioning Proper insulation to help maintain temperature, further reducing heating and cooling needs Use of recycled materials, reducing the demand for raw materials and lowering waste Low-flow fixtures to decrease water usage Design efficiencies through strategic design choices that optimise natural light and air circulation to reduce energy use. What technologies have been incorporated in construction? The company is utilising building information modelling (BIM) in its construction processes to enhance efficiency and accuracy. BIM allows for sophisticated digital modelling of a project’s physical and functional characteristics, facilitating improved collaboration across all stakeholders including architects, engineers and contractors. This approach not only helps in visualising the final product before construction begins but also streamlines communication, reduces errors and minimises waste. The integration of BIM leads to cost savings and a more organised workflow, ensuring projects are completed on time and within budget, while also providing valuable data for future building management and maintenance. Does your company plan to foray into redevelopment? We intend to enter redevelopment projects at strategic locations that offer significant value accretion to both the company and its customers. For instance, we recently announced a new redevelopment project in Bandstand, Bandra (W). What are your future plans? Looking ahead, we remain dedicated to our strategy of continuous growth through the careful selection and acquisition of new projects. We have a strong foothold in the MMR market and we are taking the maximum benefit of this deep consolidation in the industry. FACT SHEET Year of establishment: 2005 (Sunteck Realty began its journey with its first commercial property, Sunteck Centre) Top management: Kamal Khetan, Chairman & Managing Director No. of employees: 650-700 Areas of operation: MMR Completed projects: 17v Ongoing projects: Seven Upcoming projects: Seven large projects in MMR with a GDV of approximately Rs.300 billion Turnover: FY24 pre-sales stood at ~ Rs19.15 billion Rating: India Ratings has upgraded Sunteck Realty to ‘IND AA’/Stable