Suntech Realty (SRIN) has introduced the acquisition of a brand new 10 MSF residential undertaking in Shahad, positioned within the prolonged japanese suburbs of the Mumbai Metropolitan Area (MMR). The undertaking has been acquired underneath the Asset Gentle JDA mannequin wherein SRIN’s income might be 75-80%. Assuming development in FY 24-35 E, we’ve Rs. We estimate complete income of 91.2 billion (SRIN shares Rs. 72.6 billion) with pre-tax surplus of Rs. 26.6 billion and NAV accrual of Rs. 14.4 billion (103 / share).
We keep our purchase ranking on SRIN with a revised TP of 580 / share (beforehand Rs. 475), primarily based on the brand new Shahad acquisition at 1x NAV. SRIN has now added 4 new tasks from March 20 with 8msf salable space in Vasai / Vasind / Borivali together with the earlier three tasks. The principle dangers are the slowdown in Mumbai property market quantity and the autumn in residential / business costs.
The Shahad undertaking strengthens SRIN’s place within the prolonged suburbs of MMR: SRIN has introduced its plans to develop an formidable luxurious built-in residential township unfold over 50 acres with a marketable space of 10 MSF (2.9x FSI on carpet space) at Kalhan. The brand new undertaking has been acquired underneath the Asset Gentle Joint Growth (JDA) Income Share Mannequin wherein 100% development price for SRIN with IN 75-80% income shall be borne by SRIN. That is the fourth undertaking acquisition from SRIN after Mar’20 after the corporate made three undertaking acquisitions earlier. SRM now has a big presence within the peripheral areas of MMR with an space of 11.8msf within the prolonged western suburbs of MMR (7.3msf in Naigaon and 4.5msf in Vasai) and 12.6msf (2.6msf in Vasind and 10.0msf in Shahad) within the prolonged japanese suburbs of MMR. ).
In Shahad Mission NAV, Rs. 103 / share is estimated to be added: Present residential costs close to SRIN Shahad undertaking are Rs. 6,000-6,500 / psf (Rs. 10,000-10,500 / psf on carpet space foundation). Vikas (Birla Vanya). We anticipate the FY24e launch because the land proprietor (Immortal Die Chem) might have time to safe land conversion approvals. In the course of the monetary 12 months 24-35e, we spent Rs. 6,700 / psf base launch value and Rs. 3,500 / psf with development price and 5% annual development in gross sales price and value.
We estimate that the undertaking generates a complete income of Rs 91.8 billion, of which SRIN accounts for Rs 72.6 billion and undertaking price Rs. 45.9 billion, which signifies a pre-tax surplus of Rs. 26.6 billion earlier than the lifetime of the undertaking. Assuming 30% tax fee and 11% WACC, we’ve reached a NAV of Rs 14.4 billion or 103 / share for the undertaking.