Mahindra Lifespaces to launch four new housing projects by March; sees signs of demand revival
Its sales booking stood at over Rs 800 crore in the 2019-20 financial year
Realty firm Mahindra Lifespace Developers will launch four new housing projects, comprising over 900 units, in Mumbai, Pune and Chennai by March next year.
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 festival demand during the October-December period.
The demand for residential properties has improved post lockdown imposed to curb the spread of Covid-19 pandemic. The demand is 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.
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.
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 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.
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. The company is developing integrated cities and clusters in Chennai and Jaipur as Mahindra World City.