Mahindra Happinest eyes Rs 2,500 cr revenue in next five yrs

Mahindra Group's affordable housing development arm Mahindra Happinest is eyeing nearly Rs 2,500 crore of revenue and aim to deliver nearly 10,000 units in the next five years period. The company, which is developing nearly 4,000 units currently across its four projects under the 'Happinest' brand, is also evaluating 6-7 distressed assets proposals especially in Mumbai and Pune.

Mahindra Happinest is a joint platform between Mahindra Lifespaces and HDFC Capital Affordable Real Estate Fund-1 (HDFC Capital). "We have recently launched a project in Kalyan which will have 1,241 units once developed completely. We will be adding a few more going forward as we have set a target of delivering 10,000 units in the next five years," company's CEO Arvind Subramanian told PTI.

He said the company, which registered revenues of Rs 100 crore last year, is hoping to clock a topline of Rs 2,500 crore in the next five years. "Given the current market conditions, we are getting a lot of proposals for distressed assets. But we will be looking at only virgin projects where development is yet to begin, having clear titles and all approvals are in place. We are also open for outright purchase or even tying up with the landowners or developers through models like development management as well as joint development agreement (JDA)," Subramanian said.

He further said the company will look at stressed projects only in the Mumbai Metropolitan Region (MMR) and Pune as we know these markets very well. "Due to the current slowdown, real estate has become a buyers' market. We are getting good deals, but we will finalise only after completing our due diligence," the CEO added.

At present, the company has one project in Avadi in Chennai and one each in Boisar, Palghar and Kalyan in the Mumbai metropolitan region. In Kalyan, the company is developing seven towers in three phases having configurations of 1 and 2 bedrooms starting from 360 sqft to 600 sqft, priced between Rs 29.95 lakh and Rs 55.7 lakh.

Meanwhile, the company is also evaluating opportunities of targeting economically weaker section (EWS) through public-private partnerships (PPP) with various state governments to build homes costing Rs 5-10 lakh. "We are in talks with governments of states like Maharashtra, Jharkhand and Uttar Pradesh for this, but we have not yet finalised our plans on this," Subramanian added.

When asked if the company is planning to raise funds for the growth plans, Subramanian said," at present, we are well funded. Mahindra Lifespaces and HDFC Capital have created Rs 500 crore fund, which is sufficient at present for our expansion plans." PTI PSK AP AP.

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