Raymond Signs Deal For Rs 5,000-Crore Mumbai Realty Project

Realty firm Raymond Ltd. has entered into a joint development agreement to develop a housing project in Mumbai, with an estimated revenue potential of Rs 5,000 crore.

In a regulatory filing on Tuesday, the company announced that its wholly-owned step-down subsidiary, Ten X Realty East Ltd., has signed a joint development agreement for a residential project in Wadala, Mumbai.

"This landmark project is estimated to have a gross development value of approximately Rs 5,000 crore," the company said.

Raymond did not disclose the identity of the landowner involved in the JDA.

Real estate developers, in addition to outright land acquisition, are increasingly partnering with landowners to develop projects, reflecting a preference for an asset-light business model.

Raymond stated that this project would significantly contribute to the company's future growth and strengthen its position as a major player in the Mumbai Metropolitan Region.

"With this addition, the Gross Development Value of real estate projects of the company will be close to Rs 40,000 crore," they said.

The company is set to tap the capital-efficient joint development project model in Mumbai to boost growth and is already working on projects worth Rs 10,000 crore, Harmohan Sahni, chief executive officer of the real estate business, said.

"So far, we have five JDAs (Joint Development Agreement) in Mumbai worth Rs 10,000 crore in Mahim, Bandra and Sion areas of Mumbai," Sahni told NDTV Profit. "JDA is a more capital efficient process to follow. In the last five years, joint development projects are back in focus."

He explained that given the capital-starved nature of the Indian real estate industry, companies resort to raising funds every few years from the market, which investors tend to dislike as it exposes them to risk.

Mumbai-based Raymond is a leading real estate developer in India.

(With inputs from PTI)