The textile tycoon Raymond stepped into the real estate development business and launched a new arm named Raymond Realty in order to plan growth and expansion in the sector. The company owns approximately 125-acre land parcel at Thane’s Cadbury Junction and plans to monetize the same via new business venture.
The textile tycoon plans to use a 20-acre land parcel of the total area to develop its maiden real estate development project and will build a residential project on the same that will be spread across 3 million sq. ft.
K Mukund Raj, president & CEO – Real Estate business at Raymond said that while referring to this historical land bank we as the organization planned to step into the real estate market on our own. For us this is the best option available to increase the shareholders’ value. Also, we are open for other options as they will help in value creation and will also increase the return for all the stakeholders to the maximum.
In the second half of 2010, the textile tycoon Raymond went into an out-of-court settlement with its labour union that represented approximately 2,000 employees at the Thane unit. The union settled that a compensation of Rs. 313 crore before given consent for the real estate development project on the land where the textile unit was in place.
The Government offered clearance to the Raymond group only after the settlement of the case. This is the place where the flagship Raymond textile factory was in place since 1925.
CEO Raj informed that in its first project, the Raymond Realty will develop a residential project that will comprise of total 3,000 residential flats in 10-towers. Each of these towers will have 42 stories and will have 2BHK apartments with a carpet area of 510 and 630 sq.ft.
CEO further said that a landscape garden of 5-acres will be designed within the premises and it will have hundreds of trees. The company has already received nearly 450 applications via soft launch for its employees and their families.
The industry experts range the current property price between Rs. 10,000 and 14,000 per sq.ft. As per the sources, the company also received necessary clearances and will complete the project in a phased manner in next 5-7 years.
Also, the company is planning to launch a premium residential project with a bigger configuration in the next 6-9 months.