Realty developer K Raheja Corp is planning to consolidate its residential real estate portfolio to improve focus on housing and increase the scale of the business. The group also expects to attract strategic and financial investments in the company, which is proposed to be its flagship residential real estate development entity.
The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the demerger of K Raheja Group’s subsidiary K Raheja Corporate Services following the realty conglomerate’s application in order to access the capital markets through a listing of the same.
The group in its application had stated that it is seeking to consolidate the residential real estate business within the KRC Group into the resulting company K Raheja Corporate Services.
“It would result in strengthening the balance sheet of the resulting company creating increased opportunities to access capital markets, equity and/or debt infusion, post the completion of the scheme,” K Raheja Corp counsel had stated in its application to NCLT. “The demerger as set out under the scheme would attract investors seeking to acquire a stake or have exposure in a specialist residential real estate business.”
Currently, K Raheja Corp has two listed companies—departmental store chain Shoppers Stop and Chalet Hotels. It is also the promoter of listed real estate investment trust Mindspace Business Parks REIT and operates malls under the Inorbit Mall brand.
K Raheja Corp Homes is the residential vertical of conglomerate K Raheja Corp group. With a portfolio spread across Mumbai, Pune, Hyderabad, Bengaluru and Goa, the company has over 10 million sq ft of space across these five cities of India.
In June, the company acquired a 3.72-acre land parcel on LBS Marg in Mumbai’s central suburb Mulund for over Rs 130 crore and plans to develop a premium residential project on the parcel.
Recently, the group’s residential development entity inked an agreement to develop a four-acre land parcel that houses a production house’s studio in Mumbai’s central suburb Kanjur Marg.
Earlier, the developer had acquired BR House, the family house of one of Bollywood’s foremost film makers, B R Chopra. It is planning to develop an ultra-luxury project on this plot in Mumbai’s Juhu area.
