CapitalMarket.com - Sunteck Realty jumps after acquiring land in Mumbai
Hot Pursuit Friday, February 24, 2012 10:01 Hrs IST

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Sunteck Realty jumps after acquiring land in Mumbai

Sunteck Realty jumped 3.52% at Rs 387.15 at 9:58 IST on BSE after the company said that it acquired approximately 16 acres of land in Goregaon, Mumbai.

The announcement was made after market hours on Thursday, 23 February 2012.

Meanwhile, the BSE Sensex was down 55.27 points, or 0.31%, to 18,023.23.

On BSE, 4,074 shares were traded in the counter as against an average daily volume of 26,863 shares in the past one quarter.

The stock hit a high of Rs 406.85 and a low of Rs 382.50 so far during the day. The stock had hit a 52-week high of Rs 422 on 16 February 2012. The stock had hit a 52-week low of Rs 242 on 11 January 2012.

The stock had outperformed the market over the past one month until 23 February 2012, rising 31.30% compared with the Sensex's 7.92% rise. The scrip had, however, underperformed the market in past one quarter, falling 2.88% as against 15.15% rise in the Sensex.

The mid-cap real estate developer has an equity capital of Rs 12.59 crore. Face value per share is Rs 2.

Sunteck Realty said that the acquisition cost amounts to approximately Rs 300 crore with an investment of Rs 150 crore from Kotak Private Equity Group.

As the company already owns 7 acres within a distance of approximately 200 metres of this acquisition, their total stake in Goregaon (West) has mounted to 23 acres. The project proposed on the 16 acres land will enable the company to develop approximately 4 million square feet of multi-use development with a predominant share of residential development in addition to commercial and community retail locations.

Speaking on the completion of this successful acquisition, Kamal Khetan Chairman and Managing Director, Sunteck Realty, stated, "This is yet another example of how Sunteck Realty Limited has built out a portfolio of properties across Mumbai with near term cash flows through aggressive acquisitions in each down cycle of the property market. Along with our Residential development in Bandra Kurla Complex, Goregaon has emerged as the next most valuable destination for the company with 23 acres in total over 2 projects which would involve roughly 5-6 million square feet of developable area."

"The company has a total of 23 acres in Goregaon (West) spread over two projects, which we believe has emerged as one the most desired locations in the Western suburbs, given the proximity to world class malls, educational institutions, hospitals and commercial hubs in the city. We believe that with this acquisition, Sunteck Realty will now have a long term play in this prominent suburb in the medium term with the proposed multi use developments in immediate neighborhood. This project would show case the company's vision for small format townships in city centre locations of Mumbai," said Hari Krishna, Director, Kotak Realty Fund.

On a consolidated basis, Sunteck Realty's net profit was flat at Rs 0.06 crore on 2.3% decline in net sales to Rs 4.64 crore in Q3 December 2011 over Q3 December 2010.

Sunteck Realty is a leading real estate developer, with a focus in Mumbai. It has over 35 million square feet of consolidated city centric developments across 26 projects. Of these developments, more than 80% are super premium and luxury residential with balance being commercial spaces. Nearly 80% of Sunteck's economic value emanates from its Mumbai projects. The company is managed by a strong and experienced professional management team led by Kamal Khetan, and has established and structured corporate processes.

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