Mahindra Lifespace Developers Ltd (MLDL), the real estate division of Mahindra group, is preparing to enter affordable housing segment.

Mahindra Lifespace has confirmed that it is pursuing discussions with banks and microfinance institutions to create a financing system for its proposed affordable housing venture.

The company is concentrating on the high-end segment of the residential property market with prices ranging from Rs 4,000 to Rs 5,000 per sq ft. Now, it is trying to focus on the Rs 5 to Rs 12 lakh per annum income group.

Sangeeta Prasad, chief executive of Mahindra World City Developers, which is all set to launch affordable housing projects in Tamil Nadu and Maharashtra, said that it was just the legal requirements like documentation that mattered.

Speaking on the topic, she added, "We are right now talking to banks and also to MFIs to back the projects with funding the buyers."

However, she clarified that the company would facilitate funding but not directly financing of the purchases.

Thus far, Mahindra Lifespace has developed and sold around six million sq ft of real estate space. Currently, it has nearly 10 million sq ft of space under various stages of development. During the twelve months ended March 2012, the company generated Rs 724 crore in revenue and Rs 120 crore in net profit.