Sunteck Realty Limited combines Borivali into Rs 8,000 crore project

Sunteck Realty Limited has bought an adjoining 4.5-acre parcel at Borivali West and will combine it with its existing 7-acre site into one 11.5-acre project. Management estimates gross development value, or GDV, of Rs 8,000 crore for the consolidated development, but has not disclosed its approval status, detailed phases or a launch date.

What did Sunteck acquire at Borivali West?

Sunteck acquired 4.5 acres at Borivali West through an outright purchase during Q2 FY 2027. The site adjoins and touches the boundary of Sunteck’s existing 7-acre holding, taking the assembled landholding to 11.5 acres from 7 acres.

The addition increases the Borivali West holding by about 64% from its previous 7-acre size. Kamal Khetan, chairman and managing director, said the combined property would be one project and described it as one of the larger developments in that micro market, with an intended uber-luxury positioning.

Sunteck did not disclose the purchase price, seller, development cost, saleable area or projected profitability of the 4.5-acre acquisition. The Q2 FY 2027 call therefore establishes the enlarged site size and its estimated sales value, rather than providing a project-level financial model.

How will Sunteck develop the 11.5-acre Borivali West site?

Sunteck will develop the two adjoining parcels together as a single 11.5-acre project, rather than launch the newly purchased 4.5-acre site separately. In response to an analyst question, Khetan said consolidation would support better project design and product planning for Borivali West.

Management estimated GDV of Rs 8,000 crore for the combined development. GDV is the estimated value of project sales rather than reported revenue, cash collection or profit, and Sunteck did not split the estimate between the original 7 acres and the acquired 4.5 acres.

The Borivali estimate equals about 17% of Sunteck’s total GDV of Rs 46,900 crore disclosed after the acquisition. Of that overall portfolio, Rs 26,000 crore was already launched or scheduled to be launched, but management did not say whether the Borivali project was included in that amount.

Sunteck’s acquisition approach spans joint development agreements, joint ventures, redevelopment and outright purchases. Management said prospective projects must meet its internal requirements for a high internal rate of return, a high equity multiple and a project-level earnings before interest, tax, depreciation and amortisation, or EBITDA, margin of 30% to 35%; it did not disclose these measures for Borivali West.

When will Sunteck launch the Borivali West project?

Sunteck did not provide a confirmed launch date or an approval timetable for the consolidated Borivali West project. Management clarified only that the 4.5-acre purchase would not be brought to market ahead of the existing 7-acre property, because both sites will be combined.

For FY 2027, management cited a Rs 7,000 crore launch pipeline excluding Dubai, with launches weighted towards the second half. The named pipeline included Sunteck Belvedere Park at Mira Road, a residential redevelopment project on Andheri’s Western Express Highway, Tower 2 at Altavia in Sunteck City, further phases at Sunteck World and Sunteck Crescent Park, a Borivali West land parcel and a new tower at Sunteck Beach Residences.

The launch list signals that Borivali West was part of management’s H2 FY 2027 planning, but it does not establish that the full Rs 8,000 crore consolidated project will launch in that period. Approvals, the eventual product design and launch phasing remain undisclosed steps before the project can generate presales.

Sunteck said the Rs 7,000 crore pipeline excludes Dubai because it no longer sees visibility for a Dubai launch in the next one or two quarters, despite being launch-ready. Management moved the Dubai project from GDV to be launched to upcoming-for-launch GDV to make its disclosed GDV more realistic.

How does the Borivali purchase fit Sunteck’s wider pipeline?

Sunteck’s total GDV stood at Rs 46,900 crore after the Borivali acquisition, with Rs 26,000 crore already launched or to be launched. Management said it continued to evaluate several business-development opportunities at advanced stages while maintaining a capital-efficient approach across acquisition structures.

The outright purchase was made during H1 FY 2027, when Sunteck invested Rs 390 crore in business development. Net operating cash-flow surplus nevertheless grew 27% year on year to Rs 350 crore, which management said represented 45% of collections, compared with 40% a year earlier.

On a trailing 12-month basis, Sunteck reported a net operating cash-flow surplus of Rs 630 crore. The company’s annualised annuity income was Rs 86 crore, compared with Rs 76 crore in FY 2026, providing another disclosed income stream alongside the project-led development pipeline.

Management said it remained confident of 25% year-on-year presales growth in FY 2027 after reporting 19% growth in H1, when it said there had been no major launches. That target is management guidance and depends in part on execution of the second-half launch pipeline, including its stated Rs 7,000 crore potential GDV.

What do Sunteck’s sales and cash figures show?

Sunteck reported presales of Rs 824 crore in Q2 FY 2027 and Rs 1,611 crore in H1 FY 2027. In prepared remarks, premium luxury represented 51% of quarterly presales, while uber luxury and aspirational luxury each represented 25%, with the total affected by rounding.

During the subsequent discussion, Khetan described the quarterly mix as 27% uber luxury, 50% premium luxury and 23% aspirational luxury. He said aspirational luxury had shown an uptick at the Naigaon and Kalyan projects, while diminishing inventory at BKC would shift more uber-luxury contribution towards Nepean Sea Road.

Collections were Rs 371 crore in Q2 FY 2027 and Rs 780 crore in H1 FY 2027. Management said recent sales were concentrated in early-stage projects where milestone-linked collections are back-ended, explaining why H1 collections trailed H1 presales without providing a Borivali-specific collection schedule.

Reported H1 FY 2027 revenue grew 16% year on year to Rs 510 crore, while EBITDA rose 23% to Rs 160 crore and profit after tax increased 20% to Rs 100 crore. EBITDA margin expanded by 160 basis points to 30%, and management said reported margins would converge towards the embedded EBITDA margin in presales as projects reach revenue recognition.

Conclusion

The 4.5-acre purchase changes Sunteck’s Borivali West plan from a 7-acre holding into a unified 11.5-acre uber-luxury development with estimated GDV of Rs 8,000 crore. The site is material relative to Sunteck’s Rs 46,900 crore total GDV, while its acquisition took place in an H1 FY 2027 that included Rs 390 crore of business-development investment and Rs 1,611 crore of presales.

The next disclosed milestone is Sunteck’s H2 FY 2027 launch programme, which management places at Rs 7,000 crore excluding Dubai. Management has yet to provide Borivali-specific approvals, product details, phasing or a launch date, so those disclosures will determine when the 11.5-acre site can move from land assembly to presales and collections.