M3M has acquired 73-acre land in Noida at Rs 900 crore in one of the largest all-cash deal in recent times, three persons aware of the development said.
The land parcel, which is in sector 128 and on the expressway, belonged to Kadam developers, a subsidiary of NCR-based Shipra group, but was mortgaged with Indiabulls, following a default by the builder.
“Indiabulls had invited expression of interest and sone of the leading developers had shown interest considering the location of land parcel. The deal got concluded last week with M3M buying 100 per cent shares of Kadam Developers, through its subsdiary Creative Souls Pvt Ltd for an upfront cash payment of Rs 900 crore to Indiabulls,” said one of the person quoted above.
The acquisition marks entry of M3M in Noida, which has emerged as the favourite destination for investors due to upcoming infrastructure projects including airport and Film City.
M3M is also in talks with multiple stressed developers in Gurgaon to acquire land parcels.
Another person said that Indiabulls enforced its security over the said land when the Shipra Group defaulted on its debt.
M3M, Indiabulls and Shipra group did not respond to email query till press time.
Last year, M3M had acquired a 25-acre land parcel at Rs 250 crore in Golf Course Road Extension in Gurgaon to develop a low-rise housing society.
M3M group has repaid close to Rs 1000 crore in FY 20-21 and plan to clear the balance liabilities by March 2022.
The company, which has over 2,200 acres of land in the National Capital Region (NCR), is currently developing 25 million square feet of projects with a construction outlay of Rs 4,500 crore.
M3M has delivered 12 projects in eight months and by easing the burden on operational cash flow, the group will streamline its efforts to deliver unparallel experiences to customers.
M3M has committed sales receivables of Rs 6050 crores with an inventory of Rs 6250 crores including Rs 1300 crores of luxury residential Trump Tower project being developed by M3M Group in Gurugram.
