 "DLF Building")
Realty major DLF on Monday said it will invest Rs 400 crore as equity to develop a real estate project, comprising 35 lakh sq ft of estimated saleable area, in Mumbai in partnership with NCR-based builder Trident group.
The company plans to launch the first phase of the Mumbai project, comprising 9 lakh square feet of residential space, by the end of this fiscal year.
On Friday, DLF, which clocked record sales bookings of Rs 15,058 crore in the last fiscal year, announced its entry into the Mumbai property market.
"We reflected for a long before re-entering Mumbai real estate market...We are investing Rs 400 crore as equity for the entire project that has a potential saleable area of 3-3.5 million square feet," DLF CEO Ashok Tyagi told analysts.
He said the DLF will hold a 51 per cent stake in the special purpose vehicle (SPV) which will develop this project. The remaining 49 per cent will be with Trident Group. This is a Slum Rehabilitation Authority (SRA) project.
Tyagi said this will be a pilot project for DLF in the Mumbai market and based on the success it will draw a long-term growth strategy.
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Under the partnership, he said the DLF will manage construction, sales and financial closure of this project.
"We hope to launch the project in Mumbai by the end of this fiscal or latest by July," Tyagi said.
According to a regulatory filing on Friday, DLF Home Developers Ltd's (DHDL) wholly-owned arm Pegeen Builders & Developers will allot 9,800 equity shares of Rs 10 each at par to Delhi-based realty firm Trident Buildtech.
In this regard, DHDL has executed a securities subscription and shareholders' agreement. Pursuant to the allotment, the stake of DHDL, a subsidiary of DLF, in Pegeen will come down to 51 per cent.
Currently, Trident, through its wholly-owned subsidiary Sahyog Homes Ltd, is developing a slum rehabilitation project in Andheri (West), Mumbai. Trinet group is developing projects in Delhi-NCR, Haryana, Punjab and Mumbai.
Pegeen has also agreed to enter into a development agreement with SHL to develop the first phase of the project, DLF had said.
In 2012, DLF sold 17 acres of prime land in Mumbai to Lodha Developers (now renamed as Macrotech Developers) for about Rs 2,700 crore. DLF had bought the land from National Textile Corporation for Rs 703 crore in 2005.
DLF had also formed a joint venture with Akruti City to develop a few projects.
On Friday, DLF reported a 12 per cent rise in consolidated net profit to Rs 527 crore in the first quarter of this fiscal.
The company's net profit stood at Rs 469.57 crore in the year-ago period.
Total income rose marginally to Rs 1,521.71 crore in the April-June period of the 2023-24 financial year from Rs 1,516.28 crore in the year-ago period.
DLF sold properties worth Rs 2,040 crore during the first quarter of this fiscal, mainly driven by demand for its luxury properties in Delhi and Gurugram. Its sales bookings stood at the same Rs 2,040 crore in the year-ago period.
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