New Delhi, Feb 10 (IANS): Shares of Mahindra Lifespaces hit the 20 per cent upper circuit on Thursday as the company announced the acquisition of some land from Mahindra & Mahindra group.

Mahindra Lifespaces announced that it will purchase approximately 9.24 acre land in Kandivali, Mumbai from Mahindra & Mahindra for real estate development, it said in a regulatory filing.

The shares of Mahindra Lifespaces settled at the 20 per cent upper ciruit at share price of Rs 321.5.

Mahindra & Mahindra is the promoter and holding company of Mahindra Lifespace.

The land purchase is for an aggregate consideration of Rs 365 crore (subject to actual land area survey, deduction of TDS and applicable taxes) to be paid in tranches and interest of 7 per cent per annum payable during the interim period of payment on unpaid principal balance from the sale date, the company said in the filing.

This new project is Mahindra Lifespaces' second residential development in Kandivali after its successful 'Mahindra Roots' project and will offer approximately one million sq ft of carpet area.

The project is expected to be launched in FY 2023, the filing further said.

"Kandivali East is a strategically located, thriving residential hub in Mumbai, and offers well-developed social and civic infrastructure and amenities. This latest land acquisition will help us grow our presence in this high-performing micro-market and is in line with our expansion strategy in Mumbai," said Arvind Subramanian, Managing Director and CEO, Mahindra Lifespace Developers.