Delta Corp, a well-known name in gaming and hospitality, is setting up a dedicated real estate development platform, primarily focused on residential redevelopment within the Mumbai Metropolitan Region (MMR), as well as on plotted development activities in and around MMR, Alibagh, Khopoli, Karjat, and Pune. This significant initiative, revealed through a stock exchange filing on May 8, comes with a total investment of Rs 765 crore.
To bring this platform to fruition, Delta Corp is collaborating with Alpha Alternatives Fund Advisors LLP, alongside its affiliates (the AA Group) and Peninsula Land Limited. Specifically, the AA Group will contribute Rs 450 crore, amounting to 58.82 percent of the total investment, while Peninsula Land will infuse Rs 225 crore. Delta Corp itself will invest an additional Rs 90 crore, establishing the platform as the singular vehicle for these real estate ventures.
Peninsula Land has been designated as the development manager for projects stemming from this platform. Delta Corp emphasized, "This opportunity is part of our ongoing investment in growing and diversifying our business through internal accruals while remaining debt-free."
The company further reiterated that its focus will continue to lie in its primary sectors of gaming and allied hospitality, with most capital expenditures and investments directed towards the expansion of these core businesses. In line with this strategy, Chief Financial Officer Anil Malani indicated earlier this year that Delta Corp plans to reinvest in its offline operations over the next two years, aiming to achieve a profit margin of at least 38%.
Additionally, it is worth noting that Delta Corp has opted to put its online gaming expansion plans on hold following an increase in the Goods and Services Tax (GST) rate to 28%.