Sunteck Realty wants more sunshine

Sunteck Realty wants more sunshine; apparently aiming to raise around Rs. 100 crore through issuance of non-convertible debentures (NCDs).

Sunteck Realty, a top real estate developer having footprints across residential and commercial real estate across Mumbai, Goa and other locations is trying to improve its performance and deliver more developments and therefore has put out its maiden NCD issue. The money which has been raised and the further amounts that would be raised at a coupon rate of 11.75% per annum payable annually.

Some of Sunteck Realty’s residential and commercial projects include the following: Signia Isles, bkc, Signature island, bkc, Mumbai, Signia pearl, Bandra Kurla Complex, Sunteck City Avenue 1 and Sunteck City Avenue 2 at Goregaon West, Sunteck Centre, Vile Parle east, Sunteck Kanaka, Panjim, Sunteck Centrako, BKC.

Accoring to Mr. Kamal Khetan, CMD, Sunteck Realty - the funds would help the company to diversify funding sources across maturity buckets, increase balance sheet strength and lower cost of capital.
 
The idea behind procuring these funds is also to help Sunteck Realty to focus on acquisition of opportunistic land parcels and development of stalled projects in the distressed assets space. For starters the said funds would be utilized to lower the cost of debt by swapping high-cost debt and augmenting its medium to long-term resources. Another advantage that the NCDs will have is that it will allow the Company to extend its maturity profile and would lead to efficient asset-liability management.