Indian casino operator Delta Corp. has announced that it is entering the real estate sector, via a joint venture with Peninsula Land.
The JV will commence with a capital outlay of INR250 crore, with Delta being the majority stakeholder.
The group notes in a filing that ‘The need for expansion in the real estate sector stems from the fact that Delta has in the past successfully executed several projects and exited profitably coupled with its promoter having over 35 years of experience in this industry.’
The group benefits from reserves and cash flows following the cancellation of a project in Goa, and notes that it plans to focus its real estate projects in Mumbai and Goa while continuing ‘its philosophy of running a debt-free company’.
Peninsula Land (PLL) has developed 19 projects, with two under-construction and has a series of other projects in the pipeline. The company has over 22 years of experience in real estate.
Speaking of the proposed joint venture, Mr. Jaydev Mody, Chairman of Deltam stated: “Today, India’s real estate sector is poised for growth and presents attractive opportunities to businesses. The industry is consolidating as regulations increase, demand grows, and customers increasingly seek established and trusted brands. Via this strategic venture with PLL, Delta is perfectly positioned to take advantage of this new phase of growth in India’s realty space”.
Delta Corp. currently operates two land-based casinos (in Sikkim and Nepal) and three offshore casinos as well as an online poker site.