Sunday, July 14, 2024

DLF Plans Launch of Andheri Project’s First Phase Before June 2024

Real estate giant DLF Limited is poised to unveil the initial phase of its Andheri West project before June 2024, according to a senior company executive. The first phase, encompassing 1 million square feet of development, is part of a Slum Rehabilitation Authority (SRA) initiative undertaken through a joint venture with the Trident Group.

Ashok Kumar Tyagi, Managing Director of DLF Ltd, expressed confidence in the project’s progress during an investor call, highlighting that approximately 27-28 stories out of the first phase’s 30-odd stories are already completed. Tyagi affirmed the company’s commitment to a potential launch before June 2024, with the initial phase expected to cover around 1 million square feet.

DLF’s re-entry into the Mumbai property market was announced in July 2023 with this collaborative project with the Trident Group. The real estate major is set to invest around Rs 400 crore in equity to develop the entire project, with an estimated saleable area ranging from 30 to 35 lakh sq ft.

Key project details include DLF holding a 51 percent stake in the special purpose vehicle (SPV) driving the project. The partnership involves DLF managing construction, sales, and financial closure. A regulatory filing in July outlined that DLF Home Developers Ltd’s wholly-owned arm, Pegeen Builders & Developers, would allocate 9,800 equity shares at par to Trident Buildtech. As a result, DHDL’s stake in Pegeen would decrease to 51 percent.

Highlighting the significance of the Andheri project, Tyagi emphasized that it serves as a pilot endeavor for DLF in the Mumbai market, with future strategies contingent on the success of this venture.

DLF reported a consolidated net profit of Rs 629 crore in the second quarter of the fiscal year, marking a 29 percent YoY increase. Total income from operations rose to Rs 1,476 crore in July-September 2023-24 from Rs 1,360 crore in the corresponding period the previous year. The company aims for sale bookings of approximately Rs 13,000 crore for the fiscal year, driven by robust demand, and anticipates launching several new projects by March 2024.

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