In a strategic move to re-enter the Mumbai property market, real estate major DLF has joined hands with Trident Group to embark on a high-profile project in Andheri West. The ambitious venture aims to develop close to 35 lakh sq ft of prime space, with an investment of approximately Rs 400 crore.
The project, which falls under the Slum Rehabilitation Authority (SRA) scheme, will be undertaken in multiple phases. In the initial phase, the partnership plans to launch nine lakh square feet of free sale area by the end of this fiscal year. DLF CEO, Ashok Tyagi, expressed the company’s commitment to understanding the market dynamics and leveraging these insights to craft a successful expansion strategy for the Mumbai market.
DLF will hold a majority stake of 51 per cent in the special purpose vehicle (SPV) responsible for the project’s development, while Trident Group will possess the remaining 49 per cent stake. Tyagi highlighted that DLF’s equity investment of Rs 400 crore underscores the company’s belief in the project’s potential, which is estimated to have a saleable area of 30 to 35 lakh sq ft.
The successful execution of this pilot project will set the stage for DLF’s long-term growth strategy in Mumbai. The company will oversee crucial aspects such as construction, sales, and financial closure, aiming for a launch by the end of this fiscal or latest by July.
Regarding the partnership details, DLF Home Developers Ltd’s wholly-owned subsidiary, Pegeen Builders & Developers, will allot 9,800 equity shares to Trident Buildtech at par value. As a result, DHDL’s stake in Pegeen will reduce to 51 per cent. Trident’s subsidiary, Sahyog Homes Ltd (SHL), is currently involved in developing the SRA project in Andheri West, and Pegeen will enter into a development agreement with SHL to spearhead the project’s first phase.
DLF’s first-quarter results for the fiscal year 2023-24 showed a 12 per cent year-on-year increase in consolidated net profit, reaching Rs 527 crore. The total income in the same period was reported at Rs 1,521.71 crore. The sales bookings for the June 2023 quarter remained steady at Rs 2,040 crore.