July 24, 2023: Pegeen Builders & Developers (Pegeen), a wholly-owned subsidiary of DLF Home Developers (DHDL), have entered into an agreement with Sahyog Homes, a wholly-owned subsidiary of Trident Buildtech, to develop the first phase of the Slum Rehabilitation Project in Andheri (W), Mumbai.
As per media reports, around Rs 400 crore will be invested by DLF as equity to develop a project of approximately 35 lakh sqft of saleable area. DLF CEO Ashok Tyagi told analysts that this will be a pilot project for DLF in the Mumbai market and based on the success it will draw a long-term growth strategy. Under the partnership, he said the DLF will manage construction, sales and financial closure of this project. “We hope to launch the project in Mumbai by the end of this fiscal or latest by July,” added Tyagi.
As mentioned in the regulatory filing with the stock exchanges by DHDL, it has executed a Securities Subscription and Shareholders’ Agreement under which Pegeen would allot 9,800 equity shares of face value of Rs 10 per share at par to Trident Buildtech. Consequently, post allotment, DHDL will hold 51% equity share capital of Pegeen.
Presently, Sahyog Homes is developing the Andheri (West) project that is spread across three phases. According to media reports, the first phase will include development of around 2.5 million sqft.
“We are gearing up for bringing new products into the markets during the fiscal. We believe that macro tailwinds, along with the strong demand outlook, augur well for our business,” said DHDL in a statement.
The company’s net profit for the first quarter (Q1) of FY 23-24 increased to Rs 527 crore from Rs 469.57 crore in Q1 FY 22-23, up by 12% year-on-year (YOY). The revenue from operations was Rs 1,423.23 crore in Q1 FY23-24 down by 1.3% as compared to Rs 1,441.63 crore in the same time period last year.
In 2012, DLF sold 17 acre of land in Mumbai to Lodha Developers for around Rs 2,700 crore as part of its exit strategy from the non-core business. This land was bought from the land from National Textile Corporation for Rs 703 crore in 2005.
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