Realty firm targets a 5-fold increase in pre-sales in next 5 years, says top exec
Mumbai: Mahindra Lifespace Developers, the real estate and infrastructure development business of the Mahindra Group, is looking to build a pipeline of pro- jects with a development value of over 45,000 crore as part of its strategy to achieve five-fold growth in pre-sales in the next five years, said a top company official.
The new business pipeline tar- get is nearly 10 times its currentsize, as the company has so far maintained its project pipeline bet- ween 4,000 crore and ₹5,000 crore.
“We are changing the trajectory significantly. What we would have done in ten years, we are trying to do in five years,” Amit Sinha, MD, told ET. 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) du- ring this period in its focus markets of Mumbai, Pune, and Bengaluru.
To support this growth plan, Mahindra Lifespaces will be deploying over ₹7,500 crore through internal accruals and capital infusion from the parent Mahindra group as well as institutional investors.
“Mahindra & Mahindra has highlighted us as a growth gem in the Mahindra portfolio. M&M is going to put in all the resources and investment as needed as a shareholder to support our growth plans,” Sinha said, ad- ding that the company has its own resources to support around 50% of the required capital of 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.
“We are also very conservative on our debt-equity ratio. We can stretch ourselves a little bit, even by our conservative standards… We really want to invest behind it, in terms of both resources and people, and we want to see this business flourish,” Sinha said.
The company’s pre-sales stood at 1,812 crore in FY23 and at 1,243 crore in the first nine months of the current financial year. It has also sold ₹800 crore worth of apartments in its recently launched project in Kandivali suburb.
Earlier, Sinha was part of the group’s strategy team as president, group strategy, and has led several high-impact projects covering growth, transformation, and capital allocation across group companies over the past couple of years. Most of the targeted growth will come from the company’s residential business, while the industrial segment will continue to be stable.
Source-The Economic Times
