Mahindra Lifespace buys Kandivali lands from parentMAHLIFE - 471 Change: -1.65 (-0.35 %)
News: Mahindra Lifespace has proposed to acquire freehold land of ~9.24 acres in Kandivali (East), Mumbai from Mahindra and Mahindra. The aggregate consideration for the land is at Rs.365 crores (~Rs.40 crore/acre –similar to prevailing rates) to be paid in tranches and interest of 7% per annum payable during the interim period of payment on unpaid principal balance from the sale date. This would will offer ~1 mn sq ft of carpet area and is expected to be launched in FY23 end, subject to approvals.
Views: The above project would be net asset value accretive and could add Rs.400-450 crore of post-tax NAV (~Rs.25-30/share) to the overall NAV. The new land purchases could enable it to scale its residential business, going ahead. The focus on expanding its overall scale of operation and a comfortable balance sheet, lends comfort.