Delta Corp to invest in Rs 765 crore real estate platform

9 May 2024 , 01:00 PM

Delta Corp, a gaming and hospitality player, is collaborating to establish a real estate development platform focusing on residential redevelopment and plotted development in Mumbai Metropolitan Region (MMR), Alibagh, Khopoli, Karjat, and Pune.

The investment for this platform amounts to ₹765 Crore and is formed in partnership with Alpha Alternatives Fund Advisors LLP and affiliates (AA group) along with Peninsula Land.

The real estate platform will serve as the exclusive vehicle for such projects, with Delta Corp investing ₹90 Crore (11.76%), AA group investing ₹450 Crore (58.82%), and Peninsula Land (PLL) contributing ₹225 Crore (29.42%).

PLL will oversee the development management of the projects undertaken by the platform entities. Delta Corp views this initiative as a strategic use of internal accruals to diversify its business while maintaining a debt-free status, emphasizing continued focus on its core gaming and hospitality businesses.

The company aims to reinvest in its offline business to achieve a profit margin of at least 38% over the next two years, as stated by Chief Financial Officer Anil Malani. Delta Corp has postponed its online gaming expansion plans due to the GST rate hike to 28%.

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