MUMBAI: Realty player Mahindra Lifespace DevelopersBSE 4.48 % said it received Rs 324.95 crore from the sale of a five-acre property in the Byculla area of the city owned by the Kanoria family.
"The company, together with the owner of the property at Byculla, has completed the sale of the property wherein Mahindra Lifespace had development rights on part of the property. Our share of the sale consideration is Rs 324.95 crore," Mahindra Lifespace said today in a filing to the BSE. The company did not reveal the name of the buyer or the size of the deal.
In July 1995, the Kanoria family entered into a joint venture agreement with the Mahindras to develop five acres of New Great Eastern Spinning & Weaving Company textile mill land at Byculla in the southern part of the island city. The decision to sell the property was taken after settling a dispute between the Mahindras and the Kanoria family, according to company sources. Property consultant Cushman & Wakefield advised the companies.
"We have not yet decided how we would utilise the proceeds. It could be either for repaying debt or even buying land, but there is no concrete decision as of now," Mahindra Lifespace Managing Director and Chief Executive Anita Arjundas told PTI. Mahindra Lifespace reported a steep 63 per cent fall in its consolidated net at Rs 30.30 crore for the March quarter mainly due to poor sales, as income fell 48 per cent to Rs 189.38 crore.
During FY14, the company's consolidated net profit declined 29 per cent to Rs 100.63 crore, while revenue fell to Rs 705.26 crore from Rs 738.34 crore in FY13. The Mumbai-based developer is present in nine cities and its portfolio includes 11.25 million square feet of ongoing and forthcoming projects.