Rustomjee Enters Plotted Development with Acquisition of 88 Acres in Thane

Rustomjee acquires 88 acres in Thane for plotted development at INR 91 crore, marking its entry into this high-demand segment.

by Damodharan N

Updated Jul 11, 2024

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Rustomjee Enters Plotted Development with Acquisition of 88 Acres in Thane

In a strategic move to diversify its portfolio, Keystone Realtors Limited, popularly known as Rustomjee, has announced its entry into the plotted development segment with the acquisition of an 88-acre land parcel in Kasara, Thane, Maharashtra.

This significant acquisition, valued at INR 91 crore, is set to cater to the growing demand for second homes among individuals seeking a peaceful retreat from the hustle and bustle of city life.

The land, located amidst the scenic beauty of mountains, will be developed into around 500 plots of varying sizes, totaling approximately 1.5 million square feet. This project is designed to redefine luxury living in tranquil surroundings.

The total consideration for the land purchase is INR 91 crore, with an initial payment of INR 1 crore already made. The remaining INR 90 crore will be paid in a staggered manner over the next two years, with full payment expected by February 2026.

This acquisition marks Rustomjee’s first major foray into plotted development, driven by the increasing demand for second homes. This strategic move aligns perfectly with the company’s business model, offering quicker cash flow cycles and enhanced profitability and return ratios.

Plotted developments generally provide a faster turnaround and higher margins compared to traditional residential projects. The project is set to launch in the second quarter of the financial year 2025, with RERA registration already in process. This venture is a testament to Rustomjee’s proactive approach in identifying emerging market trends and its commitment to innovation and quality.

Mr. Boman Irani, Chairman and Managing Director of Keystone Realtors Limited, commented on the acquisition: "We are thrilled to announce our foray into plotted development with our first acquisition in Kasara.

This move represents a significant milestone for Rustomjee, reflecting our strategic vision to diversify and grow our portfolio. The Kasara project is not only a testament to our commitment to innovation and quality but also aligns with our goal of meeting the evolving needs of our customers.

With a solid capital structure and strong liquidity, we are well-positioned to bring this project to fruition and continue our growth momentum. We look forward to delivering exceptional value to all our stakeholders and setting new benchmarks in the real estate industry."

Rustomjee’s entry into the plotted development sector represents a significant expansion of its capabilities and portfolio, reinforcing its position as a leader in the real estate industry.

Read the full Release Here

Keystone Realtors

Incorporated in 1995, Keystone Realtors Limited is a leading real estate developer in the Mumbai Metropolitan Region (MMR), specializing in both new developments and redevelopment projects.

The company has completed 34 projects, has 13 ongoing, and 28 upcoming projects, covering a wide range of price points from affordable to super premium. They have delivered over 25 million square feet and have 42 million square feet in the pipeline.

Keystone’s asset-light approach, integrated development model, and focus on quality have enabled them to house over 17,000 families, including re-housing 1,400 existing families through redevelopment. The company is committed to creating value for all stakeholders.

Rustomjee Enters Plotted Development with Acquisition of 88 Acres in Thane - FAQs

1. What is Rustomjee's recent acquisition about?  .  

Rustomjee has acquired 88 acres of land in Thane for plotted development, valued at INR 91 crore.

2. Why did Rustomjee acquire this land parcel?   

Rustomjee aims to enter the high-demand plotted development segment to cater to the growing demand for second homes.

3. How will the acquired land in Thane be utilized?   

The land will be developed into approximately 500 plots, totaling 1.5 million square feet, aimed at offering luxury living in tranquil surroundings.

4. What is the total consideration for the land purchase?   

The total consideration for Rustomjee's acquisition is INR 91 crore, with an initial payment of INR 1 crore already made.

5. When is the project expected to launch?   

The project is set to launch in the second quarter of the financial year 2025, with ongoing RERA registration

6. How will Rustomjee finance this acquisition?   

The acquisition will be financed through a staggered payment plan over the next two years, with full payment expected by February 2026.

7. How does this acquisition align with Rustomjee's business strategy?   

This move aligns with Rustomjee's strategy to diversify its portfolio, enhance profitability, and capitalize on faster cash flow cycles offered by plotted developments.

8. What are the benefits of plotted developments over traditional residential projects?

Plotted developments typically offer quicker turnaround times and higher profit margins due to their nature and market demand.

9. Who commented on Rustomjee's acquisition of the land parcel?

Mr. Boman Irani, Chairman and Managing Director of Keystone Realtors Limited, provided insights into the strategic significance of this acquisition.

10. How does Keystone Realtors Limited support Rustomjee's development plans?

Keystone Realtors Limited, with its extensive experience and portfolio in real estate development, strengthens Rustomjee's capabilities in executing large-scale projects like the Kasara plotted development.

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