Lodha Developers is planning to generate around Rs 10,000 crore through the sale of land parcels at its data centre park in Palava, located in the Mumbai Metropolitan Region (MMR). The company intends to monetise nearly 150 acres over the next three to four years, with the proceeds expected to support infrastructure development and strengthen its annuity income portfolio.
During the company’s Q1 FY27 earnings call, Managing Director and CEO Abhishek Lodha said land monetisation is a structured part of the company’s business strategy rather than a one-time activity.
“I would like to highlight that land monetisation is not an exceptional item for this company. It is a planned recurring pillar of our business,” said Abhishek Lodha.
The developer expects to sell the identified land at an average value of around Rs 60 crore per acre. The proceeds will be used to develop approximately 1 gigawatt (GW) of powered shell capacity across nearly 90 acres within the data centre park. The project is expected to generate more than Rs 2,000 crore in annual rental income by FY32.
Lodha said the data centre expansion will largely be funded through land sales within the same park and will not significantly increase the company’s debt burden or compete with its residential business for capital.
The company currently owns around 660 acres in the data centre park, with nearly 370 acres identified for the first phase of monetisation. Around 130 acres have already been sold, while the remaining land offers further development potential.
“The balance land of around 300 acres gives us further optionality for both sale as well as build-out on our balance sheet, and we will evaluate the same in due course,” Lodha added.
The company expects its annuity business to grow significantly over the coming years. Lodha said the segment, which includes data centres, retail, offices, warehousing and industrial assets, is targeted to reach over Rs 3,000 crore annually by FY32.
“Over time, we might move from powered shell to turnkey shell, but that’s at least a couple of years out,” he said.
The company also plans to invest Rs 500-700 crore in capital expenditure during the land monetisation process. Earlier, Lodha had announced plans to develop nearly 1 GW of build-to-suit data centre-powered shell capacity at Palava, requiring an estimated investment of Rs 10,000-11,000 crore.
On the residential business, Lodha reported pre-sales of Rs 4,629 crore in Q1 FY27 and expects quarterly sales to cross Rs 5,000 crore in Q2 FY27. The company has set a FY27 pre-sales target of over Rs 24,000 crore.
Lodha also said external factors such as the West Asia conflict have had a limited impact on demand. “The demand impact is quite moderate,” he said, adding that NRI buyers from the region account for a small share of overall sales.
With Palava emerging as a key location for data centre infrastructure, Lodha’s strategy highlights the growing role of alternative real estate assets alongside traditional residential development.
Source: Rediff
