Saturday, May 18, 2024

Mahindra Lifespaces Aims for Five-fold Increase in Pre-sales with Rs 45,000 Crore Project Pipeline in Next Five Years


Mahindra Lifespaces Embarks on Ambitious Rs 45,000 Crore Project Pipeline Over Next Five Years

Mahindra Lifespace Developers, a pivotal entity under the prestigious Mahindra Group umbrella, is setting its sights on a substantial growth strategy that aims to amplify its project pipeline to an astonishing development value of over Rs 45,000 crore. This bold initiative is geared towards achieving a remarkable five-fold increase in pre-sales within the forthcoming five-year span.

Stepping up its game, Mahindra Lifespaces is eager to delve into a mix of joint developments, housing society redevelopments, and proactive acquisitions of land parcels. This targeted approach is expected to significantly enrich its Gross Development Value (GDV), especially in its key markets including Mumbai, Pune, and Bengaluru.

To fuel these ambitious endeavors, the company has formulated a robust financial blueprint involving an investment exceeding Rs 7,500 crore. This funding avenue will encompass internal accruals, alongside strategic capital injections from the Mahindra group and various institutional investors.

Amit Sinha, the MD & CEO of Mahindra Lifespaces, shared his optimistic vision stating, “We are changing the trajectory significantly. What we would have done in ten years, we are trying to do in five years.” This statement underscores the company’s commitment to not only escalating its project pipeline from its current range of Rs 4,000 crore to Rs 5,000 crore but to revolutionizing its market presence.

Supporting this growth narrative, Mahindra Lifespaces is not shying away from exploring financial partnerships at both platform and project levels. Additionally, the company is open to the idea of raising debt, bolstered by its favorable debt-equity ratio, to further amplify its developmental pursuits.

The company has already made notable strides in its pre-sales performance, recording a pre-sale achievement of Rs 1,812 crore in the fiscal year 2022-23 and Rs 1,243 crore in the first nine months of the current financial year. Notably, it also celebrated a significant sales milestone with Rs 800 crore worth of apartments sold in a recently launched project in Kandivali, Mumbai.

Under Sinha’s leadership, who previously spearheaded high-impact growth and transformation projects across the Mahindra Group, Mahindra Lifespaces is keen on magnifying its residential business. The company has already started making waves in the redevelopment sector, securing rights for significant projects in Mumbai’s Santacruz and Malad suburbs, demonstrating the trust and anticipation from societies eager to partner with the esteemed Mahindra brand.

Moreover, the company’s exploratory journey into plotted development signifies a strategic shift towards quicker project turnovers, ensuring a dynamic and versatile project portfolio that caters to various market needs.

Spanning a commendable development footprint, Mahindra Lifespaces boasts 35.06 million sq ft of residential projects across seven Indian cities, with a significant focus on integrated developments and industrial clusters. With 14 ongoing and five new projects in its repertoire, the company is well on its path towards redefining the real estate and infrastructure landscape in India.

In conclusion, Mahindra Lifespaces’ ambitious strategy highlights a visionary approach to urban development. By leveraging strategic partnerships, financial ingenuity, and a deep understanding of market dynamics, the company is poised to significantly contribute to India’s urban landscape, setting new benchmarks in quality, sustainability, and innovation.

Natalie Kimura
Natalie Kimura
Natalie Kimura is a business correspondent known for her in-depth interviews and feature articles. With a background in International Business and a passion for global economic affairs, Natalie has traveled extensively, providing her with a unique perspective on international trade and global market dynamics. She started her career in Tokyo, contributing to various financial journals, and later moved to London to expand her expertise in European markets. Natalie's expertise lies in international trade agreements, foreign investment patterns, and economic policy analysis.

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