Mahindra Lifespace to launch 4 new housing projects by March; sees signs of demand revival

The company is developing integrated cities and clusters in Chennai and Jaipur as Mahindra World City

Realty firm Mahindra Lifespace Developers Ltd will launch four new housing projects, comprising over 900 units, in Mumbai, Pune and Chennai by March next year as part of its expansion plan for future growth.

In an interview with PTI, Mahindra Lifespace MD and CEO Arvind Subramanian said the company's sales booking improved in the second quarter and are likely to be strong on festive demand during the October-December period.

The demand for residential properties has improved post lockdown, which was imposed to curb the spread of Covid-19 pandemic, driven by the salaried class who have a predictable income source, he added.

Mahindra Lifespace has achieved a sales booking of Rs 115 crore in the second quarter and Rs 154 crore during the first six months of this financial year. It collected around Rs 200 crore from customers during the first half.

"We would like to match sales bookings of last financial year," he said.

Its sales booking stood at over Rs 800 crore in the 2019-20 financial year.

Asked about new launches, Subramanian said: "We will launch four projects in the second half of this fiscal, two in Mumbai and one each in Pune and Chennai".

In Mumbai, the company will launch two projects in the mid-premium category comprising 130 units. It will launch two affordable housing projects in Pune and Chennai comprising 430 units and 345 units, respectively.

He did not share the investment details on the development of these four projects.

Subramanian said there are a lot of positive indicators on the demand side as enquiries have gone up and there have not been many cancellations of units bought before the outbreak of the Covid-19 pandemic.

The construction activities have increased with the return of the labour force and the situation is expected to become normal by the end of December, he said.

On the company's plan to acquire new land either outright or in a joint venture, Subramanian said the discussions are undergoing with landowners and 3-4 deals could conclude this fiscal year.

The company may rope in financial investors if it opts for outright land purchase, he added.

Subramanian said the company's balance sheet and liquidity position are very strong with sufficient cash in hand, and it would remain cautious in raising fresh debt because of uncertainties.

Mahindra Lifespace Developers Ltd has posted a consolidated net loss of Rs 13.48 crore for the second quarter ended September. It had posted a net profit of Rs 15.04 crore in the year-ago period.

The total income fell to Rs 37.42 crore in the September quarter from Rs 329.84 crore in the corresponding period previous year.

Mahindra Lifespaces has so far completed projects totalling about 17.48 million sq ft, with another 7.6 million sq ft under construction and forthcoming.