New Delhi, Sept 26:Realty firm Mahindra Lifespace Developers expects to bag two society redevelopment projects in Mumbai this fiscal and is also looking to develop data centres as part of expansion plans, according to its Managing Director Arvind Subramanian.
Mahindra Lifespace Developers Ltd, which is the real estate arm of Mahindra Group, is also keen on doing build-to-suit industrial and warehousing space in its existing large integrated industrial parks and may also look at housing for senior citizens.
However, the company has no plans to buy land and develop office complexes and shopping malls. Its mixed use development projects may have little bit of commercial spaces.
In an interview with PTI, the company’s Managing Director and Chief Executive Office Arvind Subramanian said it is looking at expanding its housing and industrial verticals.
He noted that there is a very big opportunity for society redevelopment in Mumbai.
“Lots of societies are coming up for redevelopment again. Many of them have burned their fingers in the past with local developers who have signed agreements with them but have not been able to take the project forward for various financial reasons,” Subramanian said.
He emphasised that the immediate trust that Mahindra brand generates among society members is a huge advantage.
“Ever since we announced in February or March that we would be keen to do society redevelopment, we have been flooded with inquiries,” Subramanian said.
Mahindra Lifespace is in an advance stage of discussion with some of these societies in Mumbai and hopes to conclude one or two “important transactions” in the next six months.
About profit margins, Subramanian said it’s almost similar to any group housing project and also does not foresee any challenge in relocation in the case of society redevelopment projects.
“Actually, the members themselves look for apartments for rental. So it’s not the responsibility of the developer to find alternate accommodation. What the developer does is he provides a rental compensation to the members for the period of construction,” he explained.
About entering new segments in real estate, Subramanian said the company has so far leased land in its industrial parks at Chennai and Jaipur and is now keenly looking at build-to-suit facilities for clients.
“The build-to-suit industrial and warehousing is a space that is of interest to us. We have a customer base there. We have a natural advantage to operate in that space,” he added.
In some of its larger land parcels, Mahindra Lifespace might consider doing mixed use developments. In those projects, he said the company might build offices and retail spaces. “But as a standalone asset class, saying would I acquire land just to build an office? Very unlikely”.
Further, Subramanian said the company considers data centres as part of the industrial and warehousing.
“It is a different asset class but similar logic for doing it. We have land in Mumbai and Chennai which are the two biggest data centre markets. We have B2B capability of reaching out to companies and managing that entire cycle of sales and relationship etc. So, data centres is also a natural space that we will be looking at,” he said.
Some real estate companies, including DLF and Hiranandani Group, have entered into data centres development to cater to rising demand for such facilities.
On the residential business front, Mahindra Lifespace Developers Ltd is targeting a 2.5-fold jump in its annual sales bookings to Rs 2,500 crore in the next three years from Rs 1,028 crore in the last financial year.
The company has already clocked Rs 600 crore of residential sales during the April-June quarter of the 2022-23 fiscal.
To grow housing business, Mahindra Lifespace is looking to acquire land parcels — through outright purchases as well as forming partnerships with landowners — that can generate sales worth up to Rs 4,000 crore.
Mahindra Lifespace Developers, one of the leading real estate firms in the country, has 32.14 million square feet of completed, ongoing and forthcoming residential projects across seven Indian cities.
The company also has over 5,000 acres of ongoing and forthcoming projects under development/management at its integrated industrial parks across four locations.
Mahindra Lifespace Developers reported a consolidated net profit of Rs 75.70 crore in the first quarter of this fiscal year. It had posted a net loss of Rs 14.04 crore in the year-ago period. (PTI)
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