Om Metals partners Mahindra Lifespaces for a housing project
Engineering company Om Metals Infraprojects today said it has tied up with realty firm Mahindra Lifespaces to develop a housing project in Hyderabad.
In a filing to the BSE, Om Metals Infraprojects informed that Om Metals Developers, a special purpose vehicle (SPV) of its arm Om Metals Real Estate, has entered into a developer- owner collaboration agreement with Mahindra Lifespaces to develop a residential project at Kukatpally.
Om Metals Infraprojects has 39 per cent stake in the SPV through its subsidiary Om Metals Real Estate and the rest 61 per cent is held by local builders, a company official said.
As per the agreement, Mahindra Lifespaces would develop 10 acre built-up area and would own a 80 per cent right of the total developed area in the project. The remaining 20 per cent right would be with SPV.
The SPV OM Metals Developers expects a revenue of Rs 75 crore as its share against an investment of Rs 20 crore on 10 acre land, the filing said.
"The JV with Mahindra Lifespaces will help us monetise our investments made in real estate as they are specialists in real estate development and create spaces for healthy living," Om Metal Infraprojects Director Business Development Vikas Kothari said.
"We have different land banks spread pan India and we are developing such land banks either through a partner or through ourself," he added.
Mahindra Lifespaces specialises in real estate development and is an integral part of the Mahindra Group.
Om Metals Infraprojects is a hydro-mechanical engineering company. It is also engaged in several real estate projects comprising of residential, commercial, entertainment, leisure and hotels. In 2006, the company entered into the business of development of SEZ and a port at Pondicherry.