| Established track record and extensive industry experience of the management:
Ashwin Sheth group was established in 1986 and has executed large-scale and high-rise residential and commercial projects across Mumbai and in Dubai. The group has completed more than 80 projects, encompassing over 35 milion sq.ft of area. The group’s key projects include Vivana Mal (Thane, Mumbai), Sheth Beau Monde (Prabhadevi, Mumbai), Vasant Lawns (Thane, Mumbai) and Iris Bay (Dubai). Y.M Infra group, based in Mumbai has been actively involved in real estate development, particularly in high-value projects. Acuite believes that the promoter’s longstanding presence, sizable scale of operations and portfolio of successfully executed projects and brand visibility in Mumbai real estate market will benefit business risk profile of VMVPL.
Locational advantage of the project:
The project ‘One Marina’ with a total saleable area of 3,81,367 sq.ft is in Marine lines, South Mumbai which offers significant connectivity to key commercial hubs such as Nariman Point and BKC with proximity to public transportation stations. The project benefits from established civic infrastructure, hospitals and cultural landmarks along with sea-facing tag that enhances the pricing ability. Given the Costal Regulation Zones (CRZ) in the area and project’s sea-facing configuration, new project supply in the area is limited. Acuite believes that the location of the project provides a significant competitive advantage and supports the project’s demand profile.
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| Moderate implementation risk and offtake risk
The ‘One Marina’ project is a located in South Mumbai, which is dominated by several real estate players in luxury or ultra-luxury segment. The project is positioned in the ultra-luxury segment, with an average unit value more than Rs.5.00 Cr. The project was launched in October, 2021, with an estimated total cost of Rs.1683.00 Cr. As on June 30, 2025, the project has incurred Rs.416.00 Cr, representing approximately 25 percent of total cost. Thus, the project is exposed to considerable execution risk. As on June 30, 2025, approximately 75 percent of the total 247 units valued at Rs.991.00 Cr. have been sold, indicating healthy sales traction. However, collection remained low with only Rs.235.00 Cr. (~24 percent) recovered from the total sales as on June 30, 2025. Additionally, from July till August 15th, 2025, a total 4816.52 sq.ft of 3 units worth Rs.19.73 Cr. were sold. As on March 31, 2026 customer advances received stood at Rs. 288.05 Cr. and cost incurred is estimated around Rs.573 Cr. as on March 31, 2026. Acuite believes that the timely construction of the project without any cost or time overruns will be a key rating monitorable. However, the locational advantage is likely to benefit the project in maintaining the sales traction.
Moderate funding risk:
The total project cost is Rs.1683.00 Cr, as on June 30, 2025, Rs.416.00 Cr. of project cost has been incurred, funded through customer advances of Rs.235.00 Cr. and remaining through debt. The remaining Rs.1267.00 Cr. project cost is to be funded by Rs.450.00 Cr of debt, Rs.17.00 Cr. equity and Rs.800.00 Cr. through customers’ advances. Additionally, received Rs.11.05 Cr. incremental collections from July till August 15th 2025. The project is funded through Rs.570.00Cr. of non-convertible debentures. The company has successfully issued first tranche NCD’s of Rs.170.00 Cr in the month of April 2025 to repay Rs.67.00 Cr. bank debt through one time settlement (OTS) which was assigned to Asset reconstruction company and rest to fund construction of the project. Further, equity infusion is limited to Rs.20 Cr, of which only Rs.3 Cr. has been infused till June 30, 2025. The funding plan for the balance project cost, is majorly dependent of the customer advances. Therefore, ability of the company to achieve expected sales traction and timely receipt of customer advances will remain as a key rating monitorable.
Susceptible to real estate cyclicality and regulatory risks:
The real estate industry in India is highly fragmented with most of the real estate developers, having a city specific or region-specific presence. The risks associated with the real estate industry are cyclical in nature of business (drop in property prices) and interest rate risk, among others, which could affect the operations. The project is exposed to the risk of volatile prices on account of demand-supply mismatches in the Mumbai real estate industry. Further, the project operates in a coastal zone and heritage- sensitive region in Mumbai, which increases exposure to environmental and zoning regulations such as Costal regulation zone (CRZ) norms, thereby impacting its operating capabilities. However, the company has already got all the necessary approvals that mitigates the risk to an extent. Acuité believes that any changes or tightening in these regulatory provisions could impact construction timelines.
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