DLF will be developing at least a million sq ft of real estate in the 1st Phase of the Andheri West Project. The Project is going to be developed with Trident Group as a partner.
According to a senior executive of DLF Limited, a major real estate developer of Northern India, will launch the first phase of the highly ambitious Andheri West project around the mid of next year.
1 million Sq Ft of Real Estate is going to be developed in this first phase of the project. The project falls under the Slum Rehabilitation Authority (SRA) and both the companies, DLF and Trident Group are coming together to develop this projection in joint venture.
Ashok Kumar Tyagi, the managing director of DLF Ltd, reported during an investor call that their slum rehabilitation project in Andheri is progressing well and on schedule. He mentioned that in the first phase, which comprises around 30 stories, about 27-28 stories have already been completed. Tyagi confirmed that they are on track for a potential launch before June 2024, with the first phase of the project expected to be about 1 million square feet.
The project was already announced in July 2023 by the company. This project will be marking the re entry of the Real Estate major DLF Limited into the Mumbai real estate market. This time Company is entering the Financial Capitals Real Estate market with a partner, Trident Group. DLF is said to invest around 400 Crore rupees in the Project. The salable are potential of the project is estimated to be around 32 to 35 lakh sq ft, as mentioned by an official from the company.
The Technicalities:
In the SPV (Special Purpose Vehicle), DLF will be the decision maker with 51 percent holding. The partnership terms are of made so that DLF will be managing the Sales, and Financial closure of the Project besides the construction.
In a July regulatory filing, DLF Home Developers Ltd (DHDL) announced that its wholly-owned subsidiary, Pegeen Builders & Developers, would issue 9,800 shares, each valued at Rs 10, to Trident Buildtech, a Delhi-based real estate company. As part of this agreement, DHDL’s stake in Pegeen will decrease to 51%.
Trident, via its subsidiary Sahyog Homes Ltd (SHL), is developing a Slum Rehabilitation Authority (SRA) project in Andheri (West). Pegeen plans to enter a development agreement with SHL for the project’s first phase.
Ashok Kumar Tyagi, managing director of DLF, noted that the Andheri project is DLF’s initial foray into the Mumbai market. The success of this project will shape DLF’s future strategy in the region.
For the second fiscal quarter, DLF reported a consolidated net profit of Rs 629 crore, a 29% increase year over year. Its total income from operations rose to Rs 1,476 crore, compared to Rs 1,360 crore in the same period last year.
DLF’s sales bookings in the second quarter reached Rs 2,228 crore with a gross margin of 57%. The company also achieved a net cash-positive status. On October 31, in another filing, DLF stated its target of approximately Rs 13,000 crore in sales bookings for the fiscal year, driven by strong demand. They plan to launch several new projects by March 2024.
