Delta Corp ventures into Mumbai redevelopment with AA Group and Peninsula Land Ltd

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Delta Corp, the listed gaming and hospitality firm, is collaborating with Alpha Alternatives Fund Advisors LLP and affiliates (AA group) and Peninsula Land Ltd to establish a real estate development platform reported Money Control. This platform aims to focus on residential redevelopment in the Mumbai Metropolitan Region (MMR) and plotted development in MMR, Alibagh, Khopoli, Karjat, and Pune. The announcement was made through a disclosure to the stock exchanges on May 8.

The joint platform, with an investment of Rs 765 crore, will have Delta Corp contributing Rs 90 crore (11.76 percent), AA group investing Rs 450 crore (58.82 percent), and Peninsula Land allocating Rs 225 crore (29.42 percent). Peninsula Land will also serve as the development manager for the projects undertaken by the platform entities. Delta Corp has earlier invested 100 crore in Peninsula Land Ltd.

Under the terms of the agreement, Delta Corp has agreed not to get involved in any competing business activities unless otherwise permitted by the real estate platform. The investment for this venture will be sourced from Delta Corp’s internal accruals, maintaining the company’s debt-free status.

Delta Corp said in a statement as quoted by CNBC TV18, “Our focus, however, remains on our core businesses of gaming and allied hospitality with majority of our capex and
investments being made to expand our core business”.

Delta Corp has described this investment as a strategic move in the real estate sector. Shares of Delta Corp rose by 2% to ₹122.55, while Peninsula Land Ltd. observed a 17.4% increase to ₹63.75. Delta Corp aims to revive its offline business over the next two years to achieve a profit margin of at least 38 percent, as per Chief Financial Officer Anil Malani’s statement earlier this year. Delta Corp has paused its online gaming expansion plans following the GST rate hike to 28 percent.