K Raheja Corp to consolidate Residential Portfolio, attracts investments

02 Aug 2023 CW Team

The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the demerger of K Raheja Group's subsidiary, K Raheja Corporate Services, following the realty conglomerate's application. This move is intended to facilitate the company's access to capital markets through a listing.

The consolidation of the residential real estate business within K Raheja Corporate Services is expected to strengthen the resulting company's balance sheet, opening up opportunities for accessing capital markets, equity, and debt infusion after the scheme's completion. Investors seeking to participate in a specialised residential real estate business are likely to be attracted to the demerger.

Currently, K Raheja Corp has two listed companies—Shoppers Stop, a departmental store chain, and Chalet Hotels. Additionally, it is the promoter of the listed real estate investment trust, Mindspace Business Parks REIT, and operates malls under the Inorbit Mall brand.

K Raheja Corp Homes serves as the residential vertical of the conglomerate, operating across Mumbai, Pune, Hyderabad, Bengaluru, and Goa, with a total space exceeding 10 million sq ft in these five cities.

In recent developments, the company acquired a 3.72-acre land parcel in Mumbai's central suburb Mulund for over Rs 1.3 billion, where it plans to develop a premium residential project. Moreover, the group's residential development entity signed an agreement to develop a four-acre land parcel in Mumbai's central suburb Kanjur Marg, which currently houses a production house's studio.

Furthermore, the company had earlier acquired BR House, the family residence of one of Bollywood's leading filmmakers, B R Chopra. It is now planning to develop an ultra-luxury project on this plot located in Mumbai's Juhu area.

K Raheja Corp, a real estate developer, is strategically focusing on its residential portfolio to enhance its housing business and scale up its operations. The company aims to attract both strategic and financial investments and establish its flagship residential real estate development entity.The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the demerger of K Raheja Group's subsidiary, K Raheja Corporate Services, following the realty conglomerate's application. This move is intended to facilitate the company's access to capital markets through a listing.The consolidation of the residential real estate business within K Raheja Corporate Services is expected to strengthen the resulting company's balance sheet, opening up opportunities for accessing capital markets, equity, and debt infusion after the scheme's completion. Investors seeking to participate in a specialised residential real estate business are likely to be attracted to the demerger.Currently, K Raheja Corp has two listed companies—Shoppers Stop, a departmental store chain, and Chalet Hotels. Additionally, it is the promoter of the listed real estate investment trust, Mindspace Business Parks REIT, and operates malls under the Inorbit Mall brand.K Raheja Corp Homes serves as the residential vertical of the conglomerate, operating across Mumbai, Pune, Hyderabad, Bengaluru, and Goa, with a total space exceeding 10 million sq ft in these five cities.In recent developments, the company acquired a 3.72-acre land parcel in Mumbai's central suburb Mulund for over Rs 1.3 billion, where it plans to develop a premium residential project. Moreover, the group's residential development entity signed an agreement to develop a four-acre land parcel in Mumbai's central suburb Kanjur Marg, which currently houses a production house's studio.Furthermore, the company had earlier acquired BR House, the family residence of one of Bollywood's leading filmmakers, B R Chopra. It is now planning to develop an ultra-luxury project on this plot located in Mumbai's Juhu area.