Real estate developer DLF Limited is likely to launch the first phase of its Andheri West project before June 2024, a senior company executive said.
The first phase of the project consists of 1 million square feet of development. The project is a Slum Rehabilitation Authority (SRA) project and is being developed as a joint venture in partnership with the Trident Group.
Ashok Kumar Tyagi, managing director, DLF Ltd, said that the slum rehabilitation project at Andheri is on track and is making very good progress.
“I think of the first phase of 30-odd stories, around 27-28 stories are already ready. And we stay on track for a potential launch definitely before June 2024. The first phase of the project should be about 1 million square feet of launch,” Tyagi, said on an investor call.
The real estate major had in July 2023 announced its re-entry into the Mumbai property market with this project in partnership with Trident Group. DLF will pump in around Rs 400 crore as equity to develop the entire project having a potential saleable area of 30 to 35 lakh sq ft, the company has said.
The contours
DLF will hold a 51 percent stake in the special purpose vehicle (SPV) which is developing the project. Under the partnership, DLF will manage the construction, sales and financial closure of this project.
Also Read: DLF re-enters Mumbai real estate market, signs agreement for a JV with Trident
The company in a regulatory filing in July had said that 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. DHDL has executed a securities subscription and shareholders' agreement in this regard. Following the allotment, the stake of DHDL, a subsidiary of DLF, in Pegeen will come down to 51 percent.
Trident, through its wholly owned subsidiary Sahyog Homes Ltd (SHL), is currently developing the SRA project in Andheri (West). Pegeen has agreed to enter into a development agreement with SHL to develop the project's first phase.
Tyagi said that the Andheri project will be the pilot project for DLF in the Mumbai market, and a future strategy will be based on the success of this project.
DLF had reported a consolidated net profit of Rs 629 crore in the second quarter of this fiscal, up 29 percent year on year (YoY). Total income from operations rose to Rs 1,476 crore in July-September of 2023-24 from Rs 1,360 crore in the year-ago period.
The company's sales bookings touched Rs 2,228 crore in Q2 with gross margins at 57 percent. It also said that it achieved net cash-positive status during the quarter. In a regulatory filing on October 31, DLF had said it was targeting sale bookings of about Rs 13,000 crore during this fiscal on the back of strong demand and will launch several new projects by March 2024.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
