Delhi’s DLF announces re-entry into Mumbai real estate market | Mumbai news - Hindustan Times
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Delhi’s DLF announces re-entry into Mumbai real estate market

Jul 22, 2023 12:49 AM IST

Delhi-based DLF group plans to re-enter the Mumbai property market with a project in Andheri West, after focusing on the National Capital Region. The company has executed a Securities Subscription and Shareholders' Agreement, through its subsidiary Pegeen Builders and Developers, to hold a 51% equity share capital in Trident Buildtech. Trident is currently developing a slum rehabilitation project in Andheri West. DLF plans to develop around 2.5 million sq ft in the first phase of the project. The company's net profit for the April to June quarter increased by 12% to ?527 crore year-on-year.

Mumbai: Delhi-based DLF group, which has ventured into Mumbai only to withdraw and focus more on its core market in National Capital Region (NCR), created a flutter on Friday by announcing plans to re-enter the city market with a project in Andheri West.

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The announcement came in a regulatory filing with the stock exchanges as it announced a 12% increase in its consolidated net profit to 527 crore in the April to June quarter of 2023, up from 469.57 crore year-on-year.

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The company disclosed that it has executed a Securities Subscription and Shareholders’ Agreement where its wholly-owned subsidiary Pegeen Builders and Developers Pvt Ltd would allot 9,800 equity shares of 10 per share to Trident Buildtech Pvt Ltd. After the allotment, its wholly-owned subsidiary DLF HOME Developers Ltd (DHDL) will hold 51% equity share capital in Pegee.

Trident is presently developing a slum rehabilitation project in Andheri West through its subsidiary Sahyog Homes Ltd, and Pegeen has entered into a development agreement with SHL to develop the first phase of the project. The company plans to develop around 2.5 million sq ft in the first phase in a three-phased project, industry sources said. More details of the project are likely to be revealed post-analyst call on Monday.

“We remain optimistic about the demand for housing as the cycle continues to remain positive. We are gearing up for bringing new products into the markets during the fiscal year. We believe that macro tailwinds along with the strong demand outlook augur well for our business. We continue to focus on strengthening our balance sheet and cash generation. Strong collections led to a further reduction in net debt during the quarter. Consequently, our Net Debt now stands reduced to the lowest ever at 57 crore,” the company said.

DLF group’s sustainability practices have been acknowledged by the US Green Building Council (USGBC) and the group holds 45 LEED Zero certifications by the council, the highest in the world for any real estate developer. Its residential project The Crest was voted as the ‘Project of the year’ by USGBC which recognises green homes.

“DLF has re-entered the Mumbai property market in the backdrop of strong demand, sales momentum, and potential of robust returns. The company has acquired a large land parcel in Andheri West, which is one of the most sought-after micro-market for high-net-worth individuals, celebrities and business owners. The launch is likely to happen during the festive season between October and November this year,” said Ritesh Mehta, senior director and Head, West and North India, Residential Services, at real estate advisory JLL adding “Andheri West has recently witnessed new launches from category A developers like Adani, Transcon, Sheth and Oberoi Realty too is likely to launch soon.”

The DLF group had created a sensation when it purchased 17 acres of prime mill land in Lower Parel at a National Textile Corporation auction in 2005 for 704 crore – the highest bid then. Mumbai-based Lodha group had also purchased mill land at Apollo Mills in Chinchpokli and Finlay Mills in Parel at the same auction.

DLF group had initial plans to construct a business hotel, a mall and a multiplex, but it changed its plan to setting up an IT park later. However, after the 2008 economic crisis, it changed plans to make a residential project, and eventually in 2012 it sold the land to Lodha Developers for 2,700 crore in an attempt to pare its debt which had ballooned to 22,700 crore then.

DLF’s re-entry into the Mumbai property market in the wake of big, listed developers venturing into multiple geographies. Bengaluru-based Prestige Projects Pvt Ltd has rapidly expanded its Mumbai portfolio in the last two years picking up prime land parcels in Mahalaxmi, Marine Lines, Worli, Pali Hill, Bandra, Bandra Kurla Complex and Mulund. Godrej and Oberoi Realty had ventured into Delhi-NCR with new luxury projects earlier.

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