As part of its plan to achieve five-fold growth in pre-sales in the next five years, Mahindra Lifespace Developers, the real estate and infrastructure development business of the Mahindra Group, is looking to build a pipeline of projects with a development value of over Rs 45,000 crore, according to a top company official.
The company has maintained its project pipeline between Rs 4,000 crore and Rs 5,000 crore up to this point, therefore the new business pipeline aim is approximately ten times its current size.
“We are drastically altering the course. The MD and CEO, Amit Sinha, told ET, “We are trying to do in five years what we would have done in ten.”
Mahindra Lifespaces Plans To Concentrate On Collaborative Ventures
In order to increase its gross development value (GDV) during this time, the firm plans to concentrate on collaborative ventures, housing society redevelopments, and the outright purchase of land parcels in its target markets of Bengaluru, Mumbai, and Pune.
Mahindra Lifespaces plans to use approximately Rs 7,500 crore in capital infusion from institutional investors and internal accruals from the parent Mahindra company to achieve this expansion ambition.
We have been singled out by Mahindra & Mahindra as a growing jewel within the Mahindra portfolio. As a stakeholder, M&M would provide all the resources and investment necessary to support our expansion objectives, Sinha stated, adding that the business has enough cash on hand to cover almost half of the Rs 7,500 crore in needed capital.
Mahindra Lifespaces Delivered Rs 1243 Crore Projects In First Nine Months Of 2023
In addition, given its low debt-to-equity ratio, the developer is willing to raise loans and may think about bringing on a financial partner at the project or platform level.
“We also have a very low debt-to-equity ratio. We may push ourselves a little bit, even in terms of conservatism. We genuinely want to see this firm succeed, therefore we’re willing to put a lot of money and people behind it,” Sinha said.
Pre-sales for the firm were 1,812 crores in 2022–2023 and 1,243 crores in the first nine months of the current fiscal year. Additionally, it has sold homes in its freshly announced property in the neighborhood of Kandivali for Rs 800 crore.
Before being named MD & CEO of Mahindra Lifespaces, Sinha served as President, company Strategy for the company and oversaw a number of high-profile initiatives pertaining to capital allocation, growth, and transformation for group firms in the previous several years.
The company’s residential business will account for the majority of the planned expansion, with the industrial section remaining constant.
Mahindra Lifespaces Focusing On Emerging Micro Markets
On the renovation front, too, we have had excellent experience. These are clients that have faith in the Mahindra name, and we have a plethora of interest from communities who wish to work with Mahindra. We are carefully selecting such societies with the appropriate size and community, according to Sinha.
In the last year, the business has obtained the rights to reconstruct two housing societies in Mumbai, including GDV projects valued at Rs. 1,000 crore and Rs. 600 crore, respectively, in the suburbs of Malad and Santacruz.
According to Sinha, the developer is planning to concentrate on rehabilitation projects with a GDV threshold of Rs 1,000 crore, with the exception of a few micro markets that are strategically significant for the business.
Mahindra Lifespaces Upcoming And Current Projects
After selling out its first project in the southern metropolis of Chennai, the company recently started work on its second project in the planned development industry.
For whatever reason, Sinha said, “we had not done enough plotted development, but horizontal development plays a significant role in my future strategy, and for the simple reason that you can get in and get out quickly.”
The 35.06 million square feet of finished, current, and upcoming residential buildings spread across seven Indian cities make up Mahindra Lifespaces’ development footprint. Currently, it has 14 existing projects and 5 new ones totaling 14.48 million square feet of space in its portfolio.
In addition, it manages more than 5,000 acres of current and upcoming projects at its four integrated development and industrial cluster locations.
Source-ET
