Shapoorji and Nirmal Lifestyle team up for ₹3,000-cr projects in Mumbai

Both the realtors on Thursday, signed the development management agreements (DMAs) for two projects in Mulund

In a major move amidst a reported property sector slowdown, real estate major Shapoorji Pallonji has tied up with Nirmal Lifestyle to execute two major projects worth Rs3,000 crore in Mulund.

Shapoorji Pallonji has teamed up with Nirmal Lifestyle to execute two major housing projects in Mulund. (HT File(Representational Image))

Both the realtors on Thursday, signed the development management agreements (DMAs) for two projects – Olympia and City of Joy.

Nirmal Lifestyle which owns the land will procure approvals for the projects while the construction and sale will be undertaken by Shapoorji Pallonji.

Both ventures will have 4,000 apartments, consisting mostly of 1 bedroom-hall-kitchen (BHK) and 2 BHK flats. These will be affordable luxury flats in the price range between Rs75 lakh and Rs1.50 crore, complete with all modern amenities.

Dharmesh Jain, managing director, Nirmal Lifestyle said DMAs are beneficial for all the parties involved. “We are going for such strategic partnerships as executing all these by ourselves will take years,” said Jain.

The DMAs signed are estimated to generate revenue worth at least Rs5,000 crore in the next five to six years.

For Nirmal Lifestyle, this is the third DMA as it has previously teamed up with Godrej Properties in Thane and with Larsen & Toubro Realty in Mulund.

Under DMA, big builders join hands with their counterparts who own land parcels to raise funds, construct towers and sell apartments.

These major firms are compensated by means of revenue sharing, share of profit or a management fee.

Samantak Das, chief economist and national director, Knight Frank India, said, “DMAs are advantageous as the core competence of various players comes into play and the project gets completed.”