Godrej Properties Buys Seven-Acre Plot In Bengaluru's Indiranagar Area
The project is estimated to have developable potential of approx 6 lakh square feet of saleable area, Godrej Properties says.
Shares of Godrej Properties Ltd. gained after it bought a seven-acre land parcel in a prime Bengaluru location with estimated booking value potential of around Rs 750 crore.
The land parcel is located in Indiranagar Extension and is close to the Old Airport Road and within the Outer Ring Road limits, the real estate developer said. It is also in close proximity to major office spaces in CBD-Bengaluru and several commercial and residential catchments of what is touted as the 'Silicon Valley' of the country.
"The project is estimated to have a developable potential of approximately 6 lakh square feet of saleable area and will be developed as a premium residential project comprising apartments of various configurations," the company said in its press release.
The company didn't mention how much it shelled out for the land, but said it sees a booking value potential of Rs 750 crore, based on current business assumptions.
"Indiranagar is an important micro market for us and we are happy to add this land parcel to our portfolio," said Mohit Malhotra, chief executive officer of the company. "This will further strengthen our presence in Bengaluru and complement our strategy of deepening our presence in key micro markets across India's leading cities."
A spokesperson for Godrej Properties said the company never discloses the cost of acquisition for purchases it makes.
Real estate consultant Anarock told BQ Prime that though they can't provide a valuation as no information is available, land prices in the locality are in the range of Rs 15 to Rs 20 crore per acre depending on the land area, road access, and several other factors.
"The locality is well-connected to the nearby IT parks which makes it an excellent residential destination," said Prashant Thakur, senior director and head - research at Anarock Group. "The residential housing prices in Indiranagar are in the range of Rs 11,000-14,000 per square feet, depending on the project and the location."
Shares of the company gained as much as 2.2% during afternoon trade, before closing 0.06% higher on Wednesday.
Of the 21 analysts tracking the company, seven maintain 'buy', five suggest 'hold' and nine recommends 'sell', according to Bloomberg data. The 12-month consensus price target implies an upside of 28.9%.