Leading Indian casino operator Delta Corp Ltd said Friday it has “deferred” a planned integrated resort development in the north of Goa and will instead make a strategic investment into the real estate sector.
In a Friday filing, Delta Corp – which operates hotels and casinos in Goa, Sikkim and Daman in India and Kathmandu in Nepal – said it has decided to make a “strategic investment” of almost 100 crore (US$12 million) to acquire 1.5 million shares in Peninsula Land Ltd (PLL) – a prominent real estate developer in the country.
Delta Corp and PLL will also enter into a joint venture with a capital outlay of US$30 million in which Delta Corp will be majority stakeholder with a view to expanding into the real estate sector.
The move comes during an uncertain period for India’s gaming industry, with Delta Corp fighting a series of crippling tax bills as well as more widespread moves to implement an industry-wide 28% GST on all gaming operators.
“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,” Delta Corp said.
“Considering that Delta’s flagship project at Dhargalim, Goa has been deferred and given its free reserves and cash flows, the company sees a compelling opportunity for long term growth in this sector.
“Delta, being the majority stakeholder, through its joint venture, proposes to execute projects mainly in Mumbai and Goa and will continue with its philosophy of running a debt free company.”
Delta Corp first announced plans to develop an integrated resort in Dhargal, Pernem in late 2020, consisting of hotels, a convention center, multiplex cinema, retail area, casino, water park and other facilities.
“Today, India’s real estate sector is poised for growth and presents attractive opportunities to businesses,” said Delta Corp chairman Jaydev Mody.
“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”.
