Mahindra Lifespaces Developers -RE has announced a significant move to strengthen its position in the real estate sector. The company's board has approved the complete acquisition of Mahindra Homes Private Limited (MHPL) from Actis Mahi Holdings, subject to shareholder approval.

Key Highlights of the Acquisition

• Transaction Value: The acquisition cost will not exceed ₹90.00 crore.
• Ownership Change: MHPL will transition from a joint venture to a wholly-owned subsidiary of Mahindra Lifespaces Developers.
• Current Ownership Structure: Mahindra Lifespaces Developers currently holds 74.35% stake in MHPL, with Actis owning the remaining 25.65%.
• Shares to be Acquired:
  • 2,05,628 Series A Equity Shares
  • 11,043 Series B Equity Shares
  • 1 Compulsory Convertible Preference Share

About Mahindra Homes Private Limited

MHPL, incorporated on June 2, 2010, is a real estate company focused on residential project development. The company has:

• Completed the "Windchimes" residential project in Bengaluru, spanning approximately 5.90 acres.
• Currently developing the final phase of the 'Luminare – Phase 3' project in Gurgaon.

Financial Overview of MHPL

The turnover of MHPL over the past three fiscal years:

Transaction Details

• The acquisition is classified as a Related Party Transaction and will be conducted on an arm's length basis.
• No governmental or regulatory approvals are currently required for the acquisition.
• The transaction is expected to be completed within three months from the execution of the Share Purchase Agreement, subject to shareholder approval and fulfillment of agreed terms and conditions.

Strategic Implications

This acquisition aligns with Mahindra Lifespace's strategy to consolidate its position in the real estate market. By fully acquiring MHPL, Mahindra Lifespaces Developers aims to streamline operations and potentially enhance its project portfolio in key markets like Bengaluru and Gurgaon.

The move comes at a time when the real estate sector is showing signs of recovery, and companies are positioning themselves for growth opportunities in the residential segment.

Investors and stakeholders will be keenly watching how this acquisition impacts Mahindra Lifespace's future project pipeline and overall market presence in the coming quarters.

Mahindra Lifespace Developers Limited , the real estate arm of the Mahindra Group, has announced a significant expansion of its portfolio in Mumbai's real estate market. The company has been selected as the partner for redeveloping two housing societies in Chembur, a strategic location in Mumbai, with an estimated combined Gross Development potential of approximately Rs 1,700.00 crores.

Project Details

The redevelopment project encompasses two housing societies spanning 2.60 acres and 1.80 acres respectively, located in the Diamond Garden area of Chembur. Mahindra Lifespace aims to transform these properties into modern, sustainable residential complexes that offer an enhanced living experience for residents.

Strategic Location and Connectivity

The project's location in Chembur is particularly noteworthy due to its excellent connectivity:

• Situated just 1.50 kilometers from the Eastern Freeway
• Direct access to Thane, Navi Mumbai, and other key parts of Mumbai
• Proximity to the upcoming Diamond Garden Metro Station on Line 2
• Nearby Monorail and Railway links
• Close to business hubs such as Bandra Kurla Complex (BKC) and Powai

Focus on Sustainability and Modern Amenities

Vimalendra Singh, Chief Business Officer – Residential at Mahindra Lifespace Developers Ltd., emphasized the company's commitment to sustainability and quality. He stated, "Redevelopment continues to play an important role in our growth journey. It enables us to bring high-quality residential projects to neighbourhoods where demand remains strong."

The redevelopment will feature:

• Well-planned homes designed with a focus on sustainability
• Modern amenities catering to contemporary lifestyles
• Environmentally responsible practices aligned with Mahindra Lifespace's commitment to Net Zero homes

Market Impact and Future Prospects

This project marks a significant step for Mahindra Lifespace in the redevelopment sector of Mumbai's real estate market. The company's selection for this project underscores its reputation and capabilities in urban redevelopment.

Chembur, known for its strategic location connecting the city's business districts with eastern suburbs, is poised for further growth. Recent announcements permitting higher redevelopment potential in the area are expected to enhance long-term value creation, making this project a timely investment for Mahindra Lifespace.

Company Background

Mahindra Lifespace Developers Limited, established in 1994, is part of the Mahindra Group. The company has a development footprint spanning 49.26 million sq. ft. of completed, ongoing, and forthcoming residential projects across seven Indian cities. It also manages over 5000 acres of ongoing and forthcoming projects under development at its integrated developments and industrial clusters across four locations.

The company is committed to sustainability, having maintained a 100% Green portfolio since 2014, and aims to achieve carbon neutrality by 2040. Mahindra Lifespaces has received over 90 awards for its projects and ESG initiatives, solidifying its position as a leader in sustainable urban development in India.

This latest project in Chembur aligns with Mahindra Lifespace's strategy of creating high-quality, sustainable living spaces in prime urban locations, further strengthening its position in Mumbai's competitive real estate market.