Godrej Properties Buys 18.6 Acre Land In Mumbai For About Rs 750 Crore To Build Luxury Homes
The company has been aggressively buying land outrightly and also entering into joint development agreements with landowners.
Godrej Properties has bought an 18.6 acre land parcel at Kandivali, in Mumbai for around Rs 750 crore to develop a luxury housing project. On Friday, Godrej Properties informed about the land transaction but did not disclose the total deal value.
Market sources and property consultants said the land deal was struck at around Rs 750 crore. Godrej Properties, which is part of business conglomerate Godrej Group, is one of the leading real estate companies in the country.
The company has been aggressively buying land outrightly and also entering into joint development agreements with landowners to create future development pipelines.
As per the regulatory filing, Godrej Properties expects sales revenue of about Rs 7,000 crore from this upcoming 18.6-acre project, which would have a developable potential of about 3.72 million square feet.
The project will comprise primarily premium residential apartments with supporting retail spaces.
Godrej Properties highlighted that this is the 8th project addition so far this financial year and "takes the cumulative expected booking value from projects added in FY'23 to approximately Rs 16,500 crore."
Godrej Properties had given a full-year guidance of adding projects with a booking value potential of Rs 15,000 crore. Mohit Malhotra, MD & CEO, Godrej Properties, said this project will allow us to significantly increase our market share in Mumbai over the next several years.
The company focuses on four key markets -- Mumbai Metropolitan Region, Delhi-NCR, Bengaluru and Pune, although it has a presence in Chennai, Kolkata, Kochi, Ahmedabad, Chandigarh and Nagpur as well.
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% 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.
In an interview with PTI last month, Godrej Properties Executive Chairman Pirojsha Godrej had noted that the housing demand continued to be strong despite a hike in interest rates on home loans.
He expected robust sales bookings in the second half of this fiscal.
On the financial front, Godrej Properties has reported a 54% 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.