Mahindra Lifespace to buy 9.24 acres land from M&M in Mumbai

Mahindra Lifespace Developers Ltd, a real estate firm, announced that it will pay Rs 365 crore to Mahindra and Mahindra Ltd (M&M) for 9.24 acres of land in Kandivali, Mumbai, for the development of a housing project. Mahindra Lifespace Developers' promoter and the holding company are Mahindra and Mahindra. Mahindra Lifespace Developers' promoter and the holding company are Mahindra and Mahindra (M&M). Following the successful Mahindra Root project, this new project will be Mahindra Lifespace's second residential development in Kandivali, with a carpet area of approximately one million sq ft. According to the company's regulatory filing, the project is expected to begin in FY23. The total consideration for this land deal is Rs 365 crore subject to actual land area survey, deduction of TDS and applicable taxes, payable in tranches, with the interest of 7% per annum payable on the unpaid principal balance from the sale date during the interim period of payment. The transaction is conducted on an arm's length basis. The company's MD and CEO Arvind Subramanian said that Kandivali East is a vibrant residential neighbourhood in Mumbai with well-developed social and civic infrastructure and amenities. This latest land acquisition is in line with Mumbai expansion strategy and will help us expand their presence in this high-performing micro-market. Mahindra and Mahindra Ltd CFO, Auto and Farm Sectors, Rajeev Goyal, said the company has an opportunity to monetise an unused land parcel in Kandivali, which is less than 10% of the company's total landholding. According to Goyal, this will have no impact on the company's operations because no operations of the company's auto and farm verticals are carried out on the land being sold. The transaction is subject to related-party approval from Mahindra Lifespace Developers Ltd shareholders, as well as other statutory approvals. Image Source Also read: Reliance, Mahindra bid for incentives under India's battery scheme