Mahindra Lifespaces Extremely Bullish on Future Developments

Mahindra Lifespace Developers, the real estatsqand infrastructure arm of the Mahindra Group, is pursuing an ambitious strategy to achieve a five-fold growth in pre-sales over the next five years. This entails building a project pipeline with a development value exceeding Rs 45,000 crore, a target nearly ten times its existing range of Rs 4,000 crore to Rs 5,000 crore. The company's focus is set on joint developments, housing society redevelopments, and outright land acquisitions in key markets such as Mumbai, Pune, and Bengaluru.

To support this significant expansion, Mahindra Lifespaces plans to deploy over Rs 7,500 crore, utilizing internal funds, capital infusion from the Mahindra Group, and contributions from institutional investors. Recognized as a growth asset in the Mahindra portfolio, the company is committed to receiving resources and investments from Mahindra & Mahindra, its parent company.

In addition to internal funding, Mahindra Lifespaces is open to bringing in a financial partner at either a platform or project level and is considering raising debt, given its low debt-equity ratio. The company's pre-sales for the fiscal year 2022–23 were Rs 1,812 crore, and for the first nine months of the current fiscal year, it stood at Rs 1,243 crore. Notably, the company sold apartments worth Rs 800 crore in its newly launched Kandivali project.

The primary growth focus is expected to come from the residential business, while the industrial segment is anticipated to remain stable. Amit Sinha, MD & CEO, highlighted the positive experience in redevelopment projects, particularly in Mumbai, where the company secured rights to redevelop housing societies in Santacruz and Malad suburbs. Mahindra Lifespaces aims for redevelopment projects with a GDV threshold of Rs 1,000 crore.

Furthermore, the company is looking into horizontal development, as evidenced by its recent project launch in Chennai. Mahindra Lifespaces' current development footprint spans 35.06 million sq ft across seven Indian cities, encompassing ongoing and forthcoming residential projects, integrated developments, and industrial clusters. The existing portfolio includes 14.48 million sq ft across 14 ongoing and five new projects, along with over 5,000 acres under development in various locations.