On Thursday realty firm Mahindra Lifespace Developers Ltd. said that they will purchase about 9.24 acres of land in Kandivali, Mumbai from Mahindra & Mahindra Ltd. for Rs 365 crore for development of a housing project. Mahindra & Mahindra is the promoter and holding company of Mahindra Lifespace Developers.
After the success of ‘Mahindra Roots’ project this will be the second residential development project of Mahindra Lifespace‘s in Kandivali which will offer about 1 million square feet of carpet area. The company said in a regulatory filing that the project is expected to be launched in FY23.
The aggregate consideration for this land deal is Rs 365 crore (subject to actual land area survey, deduction of TDS and applicable taxes), to be paid in tranches and interest of 7% per annum payable during the interim period of payment on unpaid principal balance from the sale date.
The company’s MD and CEO Arvind Subramanian said, “Kandivali East is a strategically located, thriving residential hub in Mumbai, and offers well-developed social and civic infrastructure and amenities. This latest land acquisition will help us grow our presence in this high-performing micro-market and is in line with our expansion strategy in Mumbai.”
Rajeev Goyal, CFO, Auto and Farm Sectors, Mahindra & Mahindra Ltd., said, “the company has got an opportunity to monetise an unused land parcel, which is less than 10 per cent of its entire land holding in Kandivali.”
He also said that this will not have any impact on the operations of the company as no operations of its auto and farm verticals are carried out on the land being sold.