Realty firm Mahindra Lifespace Developers Ltd will invest around Rs 500 crore to build a new housing project in Pune as it seeks to expand business amid strong recovery in residential real estate market, a senior company official said.
The company will develop more than 1,000 units in the project 'Happinest Tathawade', which is spread over nearly 7 acres of land. The project will be developed in two phases, with first one comprising over 600 apartments.
In an interview with PTI, Mahindra Lifespace Developers Chief Marketing Officer Viral Oza said the company has launched a new housing project in Pune, which has been an important market for it.
"We will start construction in a few months and possessions for the newly launched Phase one should begin by mid-2025. Planning is currently underway for subsequent phases," he said.
Asked about the investment, Oza said the total project cost is Rs 500 crore, including land and construction, to be funded through a combination of internal accruals and construction finance from banks/NBFCs.
"We have received a very encouraging response to the launch of Happinest Tathawade, with more than 440 applications received till date...The success reaffirms our conviction that the right combination of location, aspirational product and price is always a winner," he added.
Oza expects around Rs 750 crore of sales revenue from this new project.
He described Tathawade as one of the most sought-after residential destinations in Pune, being in close proximity to Hinjewadi, one of India's largest IT hubs.
"Mahindra Lifespaces has been present in Pune since 2007. We have completed 7 residential projects in Pune till date, all of which are sold out. Our project 'Centralis' in Pimpri was launched in 2019 and is currently under construction," he said.
Oza said the company currently has 1.53 million square feet of land under development in Pune, including the newly launched.
"Moving ahead, we look forward to strengthening our presence in Pune, one of India's most attractive, end-user driven property destinations and a priority residential market for the company," he said.
Elaborating more on the new project, Oza said the flats are being sold in the range of Rs 37.95 lakhs to Rs 53 lakhs. This is an all-inclusive price, including stamp duty, registration, GST and 2 years' maintenance charges.
He said the company is targeting primarily end users to market its new project, which has more than 50 specially curated features and amenities for the changing needs of modern Indian families, especially after the outbreak of the COVID-19 pandemic.
Mahindra Lifespace's focus markets in the residential segment include Mumbai, Pune and Bengaluru, all of which are end-user driven, he said.
"Pune has been one of the best performing residential markets in India, attracting many prominent real estate brands to the city. Residential real estate in Pune is primarily end-user driven, and growth enablers include a thriving IT industry, the city's reputation as an education hub, the presence of leading global automotive brands and multiple infrastructure projects," Oza said.
Established in 1994, Mahindra Lifespace is the real estate and infrastructure development business of the USD 19.4 billion Mahindra Group.
The company sells residential units under the 'Mahindra Lifespaces' and Mahindra Happinest' brands. Integrated cities and industrial clusters are being developed under the 'Mahindra World City' and Origins by Mahindra World City' brands.
Its development footprint spans 25.7 million sq ft of completed, ongoing and forthcoming residential projects across seven cities; and over 5,000 acres of ongoing and forthcoming projects under development/management at its integrated developments/industrial clusters across four locations.
Mahindra Lifespace Developers Ltd has posted a consolidated net loss of Rs 11.19 crore in the third quarter of this fiscal year on lower income. Total income declined to Rs 70.19 crore during the October-December quarter of the 2020-21 fiscal from Rs 85 crore in the corresponding period of the previous year.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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