Raymond Limited to Infuse Rs 301 Crore in Ten X Realty, Aiming to Expedite Work on Mumbai Real Estate projects

Raymond Limited, a name synonymous with quality and trust, has announced a strategic investment of Rs 301 crore in its step-down wholly-owned subsidiary, Ten X Realty Limited (TXRL).

This move, as detailed in a regulatory filing on October 3, is set to bolster the pace of construction, ensuring the timely delivery of premium residential and commercial projects.

The investment breakdown reveals that up to Rs 125 crore will be directed towards redeemable preference shares, while the remaining Rs 176 crore will be channeled as an inter-corporate deposit to TXRL. This subsidiary has embarked on an ambitious project, undertaking the redevelopment of a housing society in Mumbai's coveted Bandra locale, under a Joint Development Agreement.

TXRL's current project portfolio showcases an impressive array of properties. Among them is a high-end apartment complex in Bandra, offering 2, 3, and 4 BHK units, with a projected revenue of Rs 2 billion. The launch of this 0.6 million-square-foot project is anticipated by the end of the fiscal year, subject to requisite approvals.

A Dive into Raymond Realty's Legacy:

Raymond Realty, a venture of the textile behemoth Raymond, made its foray into the real estate sector in 2019. The company embarked on a residential development on its factory land in Thane, a rapidly developing suburb of Mumbai. With the factory having ceased operations over a decade ago, Raymond Realty leveraged this expansive land bank to craft residential spaces, generating significant revenue.

Thane's Real Estate Resurgence:

Recent data from Q2 2023 indicates a stable housing demand in Thane, with an average property rate witnessing a 1.7% QoQ increase. The suburb has been a focal point for real estate developers, given its strategic location, robust infrastructure, and burgeoning IT hubs. Raymond Realty's previous endeavors in Thane, such as the TenX habitat towers, have set industry benchmarks, further solidifying their reputation in the luxury housing segment.

Inferences & Insights:

Raymond Limited's substantial investment in TXRL underscores its commitment to enhancing Mumbai's luxury housing landscape. Given Raymond Realty's track record and Thane's burgeoning real estate potential, this move is poised to offer discerning homebuyers a blend of luxury and convenience. As Mumbai continues to expand, such strategic investments will play a pivotal role in shaping the city's skyline and catering to the evolving needs of its residents.