Suraj Estate Developers is a real estate developer with a major residential portfolio located in the markets of Mahim, Dadar, Prabhadevi and Parel. These are sub-markets of the South Central Mumbai micro market where they have established their presence and are one of the market leaders in these locations. They have been involved in the real estate business since 1986, and develop real estate across the residential and commercial sectors in the South Central Mumbai region. They are now venturing into residential real estate development in Bandra submarket. They are amongst the prominent real estate developers, focused primarily on value luxury and luxury segments and commercial segment.
In their residential portfolio, they are present across the “value luxury” and “luxury” segments across multiple price points with unit values ranging from Rs. 1 crore to Rs.13 crores. In the commercial portfolio, they have constructed and built-to-suit corporate headquarters to institutional clientele namely, Saraswat Co-operative Bank Limited (Prabhadevi) and Clearing Corporation of India Limited (Dadar).
Strengths And Risks
+ Established Brand : Suraj Estate Developers are one of the market leaders in combined markets of Mahim, Matunga, Dadar, Prabhadevi and Parel. Their deep knowledge of the market, regulatory environment and long standing presence in 'Value Luxury' and 'Luxury' segment has helped them in identifying opportunities in this market.
+ Diversified Portfolio: They have developed a diversified portfolio of projects that includes redevelopment projects as well as open plot projects in the Value Luxury Segment and Luxury Segment from 1 BHK flats to 4 BHK flats. The range of offerings and price help them to cater to different segments of the market and diversify risk of dependence on a particular segment.
+ Strong Expertise in Redevelopment Projects: Since most of the land parcels in the South Central Mumbai market are redevelopment projects, tenant settlement is a key element for unlocking value on land parcels. Due to company's track record of providing good quality free housing to the tenants/occupants, they are the preferred developer even amongst the tenants in the South Central Mumbai region.
- Region Specific Risk: Suraj Estate Developers' business is heavily dependent on the performance of the real estate sub
markets in the South-Central Mumbai region. Consequently, they are exposed to risks from economic,
regulatory and other changes as well as natural disasters in this region.
- Land Title Risk: Some of their projects include directly acquired land from the landowners and tenants. While they conduct due diligence prior to acquisition of any land, obtaining title guarantees in India is challenging as title records provide only for presumptive rather than guaranteed title of the land.
- Raw Material Pricing Risk: Significant increases in prices (including taxes and levies) or shortage, delay or disruption in supply of construction materials, contract labour and equipment, could adversely affect estimated construction cost and timelines resulting in cost overruns.
- Unsold Units: As of May 31, 2023, they had 11 Ongoing Projects with a Developable Area of 17,14,962.03 sq feet. Of the eleven (11) Ongoing Projects comprising 635 units, 164 units remain unsold.
FAQs What is the Suraj Estate Developers Limited IPO? +
When will the IPO open? +
What is the lot size of the IPO? +
How to apply for an IPO? +
When will the IPO be allotted? +
When is the IPO listing date? +
