Mahindra Lifespace Developers, the real estate arm of the Mahindra Group, plans to build a project pipeline worth over INR 45,000 crore as part of its growth strategy. The target is nearly 10 times its current size, focusing on joint developments, housing society redevelopments, and land acquisitions in Mumbai, Pune, and Bengaluru. The company will invest INR 7,500 crore through internal accruals, parent company capital, and external financing. The growth will primarily drive through residential projects, while the industrial segment remains stable. Mahindra Lifespace has recently launched Mahindra Codename Crown in Pune and plans to capitalize on the redevelopment boom in Mumbai. The company's current development footprint spans 35.06 million sq ft across seven Indian cities, with ongoing projects totaling 14.48 million square feet.
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 INR 45,000 crore as part of its strategy to achieve five-fold growth in pre-sales in the next five years. The new business pipeline target is nearly 10 times its current size, as the company has so far maintained its project pipeline between INR 4,000 crore and INR 5,000 crore.
The company is looking to focus on joint developments, housing society redevelopments, and the acquisition of land parcels on an outright basis to augment its gross development value (GDV) during this period in its focus markets of Mumbai, Pune, and Bengaluru.
To support this growth plan, Mahindra Lifespaces will be deploying over INR 7,500 crore through internal accruals and capital infusion from the parent Mahindra group as well as institutional investors. Amit Sinha, MD and CEO, says that the company has its own resources to support around 50% of the required capital of INR 7,500 crore. In addition to this, the developer may consider inducting a financial partner either at a platform or project level and is also open to raising debt given its low debt-equity ratio.
Most of the targeted growth will come from the company's residential business, while the industrial segment will continue to be stable.
On these lines, Mahindra Lifespace announced the launch of Mahindra Codename Crown, a strategically located development built in the vibrant Kharadi Annex, 4 kms from World Trade Center. It is situated on a lush 5.38-acre property in the upscale East Pune locality. With over 500 units, this phase involves two towers of 2 & 3 BHK homes and an exclusive 4 BHK tower. Its strategic proximity to Pune's IT hubs and business districts adds further value, providing residents with a convenient lifestyle.
The company's pre-sales stood at INR 1,812 crore in 2022-23 and at INR 1,243 crore in the first nine months of the current financial year. It has also sold INR 800 crore worth of apartments in its recently launched project in Kandivali suburb.
Mahindra also plans to be on the forefront in the redevelopment boom in Mumbai real estate. The company has secured rights to redevelop two housing societies in Mumbai in the last year, including INR 600- crore and INR 1,000- crore GDV projects in Santacruz and Malad suburbs, respectively. According to Sinha, the developer is looking to focus on projects with a GDV threshold of INR 1,000 crore, with the exception of a few strategically important micro markets for the company.
In the planned development business, the company recently launched its second project in Chennai after selling out the first project in Chennai.
Mahindra Lifespaces' development footprint spans 35.06 million sq ft of completed, ongoing, and forthcoming residential projects across seven Indian cities. Its current portfolio includes 14.48 million square feet of space across 14 ongoing and five new projects. It also has over 5,000 acres of ongoing and forthcoming projects under development, management at its integrated developments and industrial clusters across four locations.
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