Mahindra Group-owned real estate firm Mahindra Lifespace Developers Ltd (MLDL) has signed a joint development agreement with GKW Ltd, earlier known as Guest Keen Williams, to build a mixed-use development on a 37 acre land parcel at Bhandup, in Mumbai's eastern suburbs.
In a press release, Mahindra Lifespace said that while the residential segment will be the key focus for development on the land, it will also include commercial and retail components.
In an exchange filing, Mahindra Lifespace said that an arm of the company holds an economic interest of 70.5 percent in the agreement, while GKW holds the other 29.5 percent. The plot will have a development potential of around 3.6 million square feet, according to the company.
Moneycontrol has approached MLDL for comment on the gross development and revenue potential from the project, and the story will be updated once the response is received.
Real estate consultants Anarock Capital acted as the facilitators of the deal, while law firm Khaitan & Co were the legal advisors.
"This strategic development in Bhandup reinforces our goal of expanding Mahindra Lifespaces’ footprint in Mumbai. The project aligns with our vision to achieve 5x growth while remaining committed to innovative designs, sustainability, and creating vibrant communities," said Amit Kumar Sinha, managing director and chief executive officer of Mahindra Lifespace Developers.
GKW, previously a major engineering player has its registered office in Howrah, near Kolkata, as well as in Bhandup, and is now largely present in logistics and warehousing services. It had previously undergone a prolonged period of downturn, and shuttered its Howrah facility, while possessing the land bank there.
Over the past few years, companies present in the Vikhroli-Kanjurmarg-Bhandup-Thane region, which comprised much of the legacy industrial areas of Mumbai, have been steadily monetising their land banks as industries have moved further out of the city.
In August, tile maker Nitco sold a four-acre land parcel in Kanjurmarg to real estate major Runwal Realty to Rs 232 crore, while other major land holders in the region, such as Godrej, Raymond, Blue Star, and others, have also partnered with their in-house or third party developers to carry out real estate development.
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