Mahindra Lifespace Developers stock soars 6% on ₹2050 crore real estate deals

Shares of Mahindra Lifespace Developers, the real estate and infrastructure development arm of the Mahindra Group, surged 6% in early morning trade to reach ₹647 apiece following the announcement of two significant real estate deals.

In an exchange filing, the company disclosed the closure of deals totaling ₹2050 crore in gross development value (GDV). These strategic moves include securing a third redevelopment project in Mumbai and acquiring a prime land parcel in Bengaluru, further solidifying the company's presence in two of India's most dynamic real estate markets.

Also Read: Bansal Wire IPO: GMP, subscription status to review. Apply or not?

The company announced its selection as the preferred partner for the redevelopment of seven residential societies in the prestigious Borivali West neighborhood of Mumbai. This project offers an estimated gross development value of approximately ₹1800 crore. The project will be developed under the state’s cluster redevelopment policy.

Further, it said it acquired 2.37 acres of land in Singasandra, South Bengaluru, located next to its existing Mahindra Zen project, which received a stupendous response at launch. The land is estimated to have a developable potential of approximately 0.25 million square feet, with a gross development value of around ₹250 crore.

Amit Kumar Sinha, Managing Director & CEO of Mahindra Lifespace Developers Ltd., said, “These strategic moves in Mumbai and Bengaluru, with a combined GDV potential of ₹2050 crore, mark a significant milestone in our growth trajectory. Our third redevelopment project in Mumbai, with a GDV of ₹1800 crore, reinforces our commitment to urban renewal by creating value in established neighborhoods.

Also Read: HDFC Bank share price falls over 3% as deposits, advances growth decline in Q1

"Simultaneously, our ₹250 crore GDV land acquisition in Bengaluru's Singasandra area positions us to further capitalize on the city's robust real estate demand. Both deals align with our focus on high-potential markets and underscore Mahindra Lifespaces' dedication to delivering quality living spaces across diverse urban landscapes. As we strengthen our presence in key markets, we remain poised for sustained growth and value creation in India's dynamic real estate sector," he further added.

Ambitious growth targets

India’s strong macroeconomic performance and financial sector stability have augured well for the real estate sector in India. In the residential segment, consumer demand and offtake remained robust even in the face of firm interest rates.

The industrial segment, too, saw strong demand coming from both domestic and international businesses. Buoyed by the opportunities that the Indian real estate market presents, Mahindra Lifespaces aspires to achieve strong growth over the next five years. It has set a goal of increasing its pre-sales to 8,000–10,000 crore in the next five years, which is about 5X of its 2022–23 pre-sales levels.

Also Read: Suraj Estate shares soar 10% to hit new record high, zoom 94% in a month

The company’s strategy for the residential business is to expand in Mumbai and Pune, where it already has multiple successful projects, as well as in Bengaluru, where it has been gradually building its presence. Projects in other geographies will be based on specific opportunities that emerge from time to time. As for product segments, the company will expand its offerings under the mid-premium and premium housing segments.

In FY 2023–24, Mahindra Lifespaces launched five new projects: Zen in Bengaluru, Vista in Mumbai, and Codename Crown in Pune, as well as two plotted developments—Lakefront Estates and Green Estates—in Mahindra World City Chennai (MWC Chennai)’. The company also launched fresh inventory in three of its existing projects. These launches cumulatively accounted for around 4.42 million square feet (msft) of saleable area, as per the company's FY24 annual report.

Also Read: Paper stocks JK Paper, Orient Paper and others jump up to 64% in a month

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.