NEW DELHI: Enthused by strong housing demand, Godrej Properties is aggressively acquiring land for future development and has added eight new projects so far this fiscal with an estimated revenue potential of Rs 16,500 crore.
With four months still left in 2022-23 financial year, Godrej Properties Executive Chairman Pirojsha Godrej is hopeful that the company will add many more land parcels in its portfolio by March.
The company is in discussions with multiple landowners for acquisition of land, either outrightly or by entering into joint development agreements (JDAs).
“We have added projects worth Rs 16,500 crore so far this financial year and have already crossed our full year guidance of Rs 15,000 crore. Given strong further visibility, we will end the 2022-23 fiscal much ahead of the target,” Pirojsha Godrej told PTI.
He did not share the revised target for the new business development for the current fiscal.
Pirojsha sounded extremely bullish on sales bookings and new land acquisitions in the coming months.
In February this year, Pirojsha Godrej had outlined plans to invest around Rs 7,500 crore over the next 12-18 months on acquisition and development of new real estate projects.
As per the plans, Godrej Properties has added 8 new land parcels, almost all 100 per cent owned, so far this fiscal and these will help in generating sales revenue worth Rs 16,500 crore.
Earlier this month, Godrej Properties acquired an 18-acre land parcel in Kandivali, Mumbai for Rs 750 crore to develop a luxury housing project.
The project will have an estimated revenue potential of about Rs 7,000 crore.
Last month, the company won 12.4 acres of land, two adjacent land parcels, in Sector 146, Noida. The project will have an estimated developable potential of about 3.2 million square feet.
In other land deals during this fiscal, Godrej Properties acquired about 0.5 acres near Carmichael Road in Mumbai. The project will offer 0.12 million square feet of luxury residential development with a sales revenue potential of Rs 1,200 crore. It is a 100 per cent owned project.
In Bengaluru, the company acquired a 7-acre land, where it will develop a housing project with sales potential of Rs 750 crore.
Godrej Properties has also bought about 50 acres at Manor palghar in Mumbai Metropolitan Region (MMR).
The fully-owned project will offer 1.2 million square feet of residential plots with an estimated revenue potential of about Rs 500 crore.
Godrej Properties has bought a 12-acre land at Mundhwa in Pune. The project will offer 2.2 million square feet of premium group housing.
The estimated sales bookings potential from the fully-owned project is about Rs 2,000 crore.
In another deal, the company acquired a 58-acre land in Nagpur with saleable area of around 1.5 million square feet.
The estimated revenue potential from the plotted development project is about Rs 575 crore.
In April, Godrej Properties extended its existing arrangements with Shivam Realty to develop a residential group housing project at Kandivali.
The project is an extension of two other projects — Godrej Tranquil and Godrej Nest, and will offer approximately 0.7 million square feet of saleable area with an estimated revenue potential of about Rs 1,000 crore.
Godrej Properties, which is part of business conglomerate Godrej Group, is one of the leading real estate companies in the country.
It focuses on four key markets — Mumbai Metropolitan Region (MMR), Delhi-NCR, Bengaluru and Pune — although the compnay has a presence in Chennai, Kolkata, Kochi, Ahmedabad, Chandigarh and Nagpur as well.
On operational front, Godrej Properties has set a target of Rs 10,000 crore sales bookings for 2022-23 as against Rs 7,861 crore registered during the last fiscal year.
It has already clocked a 60 per cent growth in sales bookings during the first half of this fiscal year at Rs 4,929 crore as against Rs 3,072 crore in the year-ago period.
On financial front, Godrej Properties has reported a 54 per cent increase in consolidated net profit at Rs 54.96 crore in the quarter ended September 2022 on higher income.
Its net profit stood at Rs 35.73 crore in the year-ago period.
Total income also rose to Rs 369.20 crore in the second quarter from Rs 334.22 crore a year ago.
Source: Press Trust of India