From ET Realty
MUMBAI: Mahindra Lifespace Developers, the real estate development arm of the Mahindra Group, is aiming to derive more than one-third of its revenue in the next four-five years from the Mumbai property market alone, said MD & CEO Anita Arjundas.
Interestingly, Mumbai contributed nearly 65% to Mahindra Lifespace’s residential revenues in 2010, but has zero contribution to the developer’s current revenue. “The peak revenue contribution from Mumbai property market was on lower base back then. We are a growing company and even a third of revenue from Mumbai will be higher Apart from the current project pipeline, we are actively looking at joint venture and joint development proposals,” Arjundas told media in an exclusive interaction.
The company did not acquire any new land parcel or pick up any redevelopment project between 2006 and 2011, given the uncertainty over floor space index consumption and high valuations then. The company is planning to launch four new projects with nearly 1 million sq ft residential saleable space in Mumbai over the next few quarters. In Mumbai, the company executed its last project at Bhandup suburb in 2013, while another project in Goregaon was executed in 2012. Sales at these projects, however, were completed by 2011 itself.
Apart from Mumbai, Mahindra Lifespace will be focusing on Pune and Bengaluru property market with at least two launches in these markets every year.
“We will be focusing on cities with economic growth and job creation as a key criteria while selecting the projects. For alliances and land acquisitions, clear title and other technical factors will be crucial. In the last few quarters, we have looked at a total of six deals, but have taken only two of these forward,” said Arjundas. The developer has completed 2 million sq ft across India in the last three quarters until December and is aiming to complete additional 0.5 million sq ft by the end of the current financial year.
The company has acquired 21 acres with an estimated development potential of 0.89 million sq ft at Palghar near Mumbai for developing affordable housing project under the Happinest brand.
In 2013, Mahindra Lifespace Developers and an investment arm of Standard Chartered Bank entered into a joint venture for development of residential projects in India with total combined investment commitment of Rs 1,000 crore by both the entities over multiple projects.