BENGALURU: Mahindra Lifespace Developers Ltd on Thursday said it will purchase 9.24 acres of land in suburban Kandivali, in Mumbai, from Mahindra & Mahindra Ltd for real estate development.
The land will be acquired on a base consideration of ₹365 crore, a company spokesperson said. The developer has the option to pay the total consideration in tranches over a maximum of three years with 7% per annum interest payable on reducing balance.
It will be used for a new project, and is Mahindra Lifespaces’ second residential development in Kandivali after the ‘Mahindra Roots’ project. It will offer one million sq ft of saleable area and is scheduled to be launched in 2022-23.
“Kandivali-east is a strategically located, thriving residential hub in Mumbai, and offers well-developed social and civic infrastructure and amenities. This latest land acquisition will help us grow our presence in this high-performing micro-market and is in line with our expansion strategy in Mumbai," said Arvind Subramanian, managing director and CEO, Mahindra Lifespace Developers.
The land parcel lies in the residential area of Akurli Road in Kandivali-east.
The closing of the transaction, which has been approved by the boards of Mahindra & Mahindra and Mahindra Lifespace Developers, is subject to approval from shareholders of the latter, and other statutory approvals.
Rajeev Goyal, chief financial officer, auto and farm sectors, Mahindra & Mahindra, said, “We are delighted to get this opportunity to monetise an unused land parcel, which is less than 10% of our entire land in Kandivali and will not have any impact on the operations of the company as no operations of the auto and farm sectors are carried out on the land being sold."
