Asked if he was confident that the demand will sustain in the next fiscal amid rising home loan interest rates and other factors impacting homebuyers, Irani said, "It is difficult to predict growth, but I see there is a lot of interest to buy homes in MMR. There is still a dream to own a house in MMR and there is a lot of enthusiasm." On rising interest rates, Irani said that one also should consider that salaries have gone up, too, and there is a lot of infrastructure in the pipeline to boost real estate in MMR.
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Irani spoke to Moneycontrol about his company's expansion plans on the sidelines of a function announcing the receipt of the occupation certificate (OC) for its last tower at Rustomjee Seasons project in the Bandra Kurla Complex (BKC) Annexe area in Mumbai that was launched in 2015. Managing director Boman Irani says they do not have any plans to enter the data centres or warehousing businesses but will focus on the residential segment in the Mumbai Metropolitan Region.Developer Rustomjee Kalyan -owned Keystone Realtors on November 9, fixed the price band at Rs 514-541 per share for its initial public offering (IPO) that opens on November 14.
Boman Irani, managing director of Rustomjee Dombivli said at the launch that the company plans to generate Rs 635 crore from the exercise, adding that it would continue to be a Mumbai and Mumbai Metropolitan Region (MMR)-centric real estate developer with residential projects being the focus. Irani said 70 percent of the company’s future supply will be in the Rs1-7 crore segment. “We are growing our strength in Thane. In Mumbai, we will not spread everywhere but stay in areas where we are strong and continue to study markets in MMR,” Irani said. The IPO will close on November 16, the company plans a fresh issue of shares worth Rs 560 crore and an offer for sale of Rs 75 crore by selling shareholders.
It intends to use the proceeds to repay and prepay debt, and for the acquisition of future real estate projects, besides general corporate purposes, it said. Asked whether Rustomjee Kalyan has plans to get into data centres or warehousing, Irani said there were no such plans at the moment. “We are exploring infrastructure, but we have no plans to step out of residential right now. Commercial and social commercial segment we will continue to do, but our focus remains the residential segment. We will continue with redevelopment, joint venture models,” Irani added. According to a Keystone statement, it has completed construction of 13,176 units as of June 2022, of which 114 are unsold, and 4,627 units are under construction as on June 30, 2022, of which 1,748 were unsold.
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