Realty major Runwal Group has forayed into the development of commercial real estate with a plan to develop over 10.5 million sq ft office spaces with an initial investment of Rs 4,500 crore over the next four years including the land acquisition, said a top company executive.
The company will be developing a total of three commercial real estate projects in phases across Mumbai’s Kanjurmarg and Dombivli, and Viman Nagar in Pune. Of these, it has already started work on nearly 1 million sq ft in its Kanjurmarg project Runwal Commerz and Runwal Edge in Dombivli.
Runwal Group is planning to invest in these developments through a mix of internal accruals and debt. These campus-style developments will be part of the mixed-use developments that include premium residential projects, large open green spaces and retail components.
“After robust performance in the residential and retail segment, we are now foraying into commercial developments. The infrastructure development in and around Mumbai is changing the entire region’s connectivity significantly. These premium office spaces will cater to businesses in Mumbai and surrounding areas of Navi Mumbai, Thane and Kalyan,” Subodh Runwal, managing director, Runwal Group, told ET.
Of the total proposed development, Runwal Commerz will be spread over a 13 acres land parcel that is part of a 36-acre integrated township Runwal City Center. This project will see a total 3.5 million sq ft commercial development across three towers.
This 13-acre plot close to the Mumbai Metro line 4 and 6’s interconnection was acquired by the company in December 2021. At the township, the company has received the occupation certificate (OC) for two residential towers and the handover is currently in progress.
Runwal Edge in Dombivli will be part of a large integrated township Runwal Gardens spread over 115 acres. This project will see development of a total six towers across three phases.
The company has already delivered five towers in this township and the handover of three more towers is currently in progress following the receipt of statutory OC last week. The developer has sold over 9,000 apartments in this project since its launch in 2019.
HDFC Capital was one of the key investors in Runwal’s Kanjurmarg and Dombivli township projects and received a complete exit in 2022. The group’s projects also count international investors including Apollo Global and KKR.
The project in Pune’s Viman Nagar, which is an established commercial real estate micro market, will see development of 1.5 million sq ft on a 10-acre land parcel owned by the company.
According to Runwal, the company is designing these projects with the ‘Walk to Work’ concept with sustainable living as the core focus, offering occupants and residents a range of premium facilities along with green surroundings in the vicinity.
Runwal Group has already developed and delivered over 50 projects spread over 25 million sq ft in Mumbai Metropolitan Region (MMR) and has over 23 million sq ft under construction.
The new infrastructure projects and expected improvement in connectivity are already transforming the commercial real estate landscape in and around Mumbai. Newer locations including Powai, Kanjurmarg, Vikhroli, Malad, Goregaon and Thane are witnessing rising preference for offices among occupiers.
Under development and upcoming infrastructure projects in proximity to these projects have led to increased demand and offer the potential for commercial property rates to escalate. These include Goregaon-Mulund Link Road, metro connectivity across Mumbai, Ahmedabad-Mumbai Bullet Train, Navi Mumbai International Airport, etc.
The ongoing Rs 1.8 lakh crore worth transit infrastructure development in Mumbai region is expected to unlock development potential of over 136 million sq ft, said a recent report.
The government of Maharashtra is working towards connecting major nodal centres in and around Mumbai and is preparing a special plan for the metropolis’ transportation infrastructure keeping in mind the evolving needs over the next two decades.
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