What were the reasons for Rs100 crore acquisition of prime industrial land in Vasai East?
I started my career supervising the construction of a factory building in Vasai east in 1979. This sowed the seed to start my own construction business from Vasai itself. In 4 decades, we have seen this place evolve from a quaint town to an industrial hub and a densely populated dormitory city. This place feels as much home as home does. In other words, this town is our karmabhoomi.
In India, the real estate industry is governed largely by local regulations which has traditionally made it a micro market-based business. Our deep-rooted connection with the geography gives us the confidence to believe its time has come; banking on which we have made one of the largest outright acquisitions this market has seen in the recent past.
Vasai-Virar as a region is slated to be one of the key growth areas in the infrastructure boom that we are witnessing. India’s first bullet train, Vasai Railway Terminus, Vadhavan Port, Mumbai’s Third Airport, the Coastal Road Extension, Virar-Alibag multi-modal corridor are some of the major projects which are acting as a key catalyst to make it Mumbai 4.0.
What will be the development strategy for the acquired land?
We propose to develop a grade A mixed use commercial project with a retail experience, boutique offices, large format commercial floor plates and hospitality - bringing together work, commerce, and lifestyle in a seamless urban environment.
With the bullet train connecting BKC to Vasai in under 20 mins we believe our project will bring BKC to life in this market. An industrial cluster transitioning into a commercial hub is phenomenon we have seen happen time and again across the globe. With a local work force of over 400,000 people in the region, our project shall spearhead this transition for the local market. India did not end up adopting work from home, but next wave is work near home.
As much as a real estate project, our development strategy entails delivering an infrastructure project that the Vasai–Virar community truly needs. As the city and its people have evolved we realise and aspirational gap, which is what we intend to fill with this project.
What is the expected GDV of the project?
At Nawany Group, we are making one of our most significant long-term commitments to the Vasai micro-market. Over the next five years, we plan to invest upwards of Rs1,000 crore across new asset classes, signalling our deep confidence in the region’s growth trajectory. Keeping the asset classes in view a large of the part project shall be retained in an owner-operator model. The development potential of this project is 1.6 million sq.ft. with an estimated GDV upwards of 2,500 cr.
How do you see the impact of infra-led development across Maharashtra from a real estate lens?
First and foremost, it is very heartening to see that today, the real estate brochure of any developer in any city has its first page referring to upcoming connectivity and infrastructure. Decentralisation and distributed growth shall be the outcome of infra story, and the next wave of value creation will come from—well-connected, infrastructure-rich micro-markets that offer scale, affordability, and quality of life. By this I mean that several other economic, political, social and cultural aspects will end up playing in vital role in determining which future growth centre fairs better than the other from a real estate lens. In the words of urban economist Edward Glaeser, 'The real city is the people; the physical city is just the infrastructure that connects them.
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