Realty developer Lodha’s listed company Macrotech Developers has entered into an agreement with Havemore Realty to develop the free-sale component of a 1.4-million-sq-ft Mumbai project in which HDFC was an investor.
HDFC that has merged with HDFC Bank will get a certain built-up area as part of repayment of its investment made earlier.
As per the terms of the agreement, Macrotech Developers will be responsible for development of a mixed-use project in Andheri, while Havemore Realty is expected to secure approvals in addition to completing the rehabilitation part of the project.
HDFC was the financial investor in the development that was being undertaken by Havemore Realty as a slum rehabilitation project. The pact with Macrotech Developers was concluded prior to the merger of HDFC Bank and HDFC.
Macrotech developers will get access to a total base area of nearly 2.50 lakh sq ft for the development. The company has paid a stamp duty of Rs 7.83 crore for the registration of the deal that took place in May, showed the documents accessed through CRE Matrix.
The project has already completed the majority of the rehabilitation part, while Macrotech Developers has recently started construction work on the free-sale component of the project.
Macrotech Developers has already launched a luxury residential project with configurations of 3- and 4-bedroom apartments and penthouses with prices upward of Rs 6.5 crore. According to property brokers operating in the vicinity, the project has received bookings for around 70% of the launched inventory so far.
In the June quarter, Lodha has added five new projects with potential gross development value of Rs 12,000 crores across various micro-markets.
“Given the pace of new project additions and strengthening the pipeline of business development opportunities, we are well on our way to exceed our full year guidance for new project additions,” Abhishek Lodha, MD & CEO, Lodha said while detailing the company’s operational update for the June quarter on Tuesday.
The company has provided full-year guidance for new business development through project additions worth Rs 17,500 crore for the current financial year.
Industry experts believe the ongoing market consolidation in favour of large and established developers will gain momentum owing to their better execution ability and access to liquidity in the current market environment than that for smaller developers.
Macrotech Developers has recorded its highest ever first quarter pre-sales at Rs 3,353 crores, marking a robust start to the financial year 2023-24.
The company’s collections during the quarter rose to Rs 2,403 crore and it expects the same to pick up in the remaining quarters of the financial year. Its net debt increased 3% to Rs 7,264 crores primarily on account of front-loaded business development investment.
According to Lodha, the marginal increase is on a significantly enlarged base of sales and business development. The company remains on the path to achieve its full year guidance for reduction of net debt to lower of 0.5 times equity and 1-time operating cash flow, with significant debt reduction seen in the second half of the year.
