Godrej Properties is buying plots with a revenue potential of Rs 20K cr this fiscal | Business News – Business Standard
To expand operations amid strong residential demand, real estate firm Godrej Properties Ltd has acquired multiple plots so far this fiscal that have the potential to generate revenues of around Rs 20,000 crore.
Godrej Properties has exceeded FY 2023-2024 guidance to achieve new business development worth Rs 15,000 crore, which means adding plots through direct purchases and partnerships with landowners.
With the acquisition of two plots earlier this week, Godrej Properties Managing Director and CEO Gaurav Pandey said the company has already achieved its annual new business development target of Rs 15,000 crore.
“We have added new projects worth Rs 8,425 crore in the first nine months of this fiscal,” Pandey said.
In the current quarter, the company has made two outright land acquisitions in Hyderabad and Noida, while entering into a joint venture in Bengaluru.
These three new acquisitions will help generate cumulative revenue of around Rs 11,500 crore, taking the total so far this fiscal to around Rs 20,000 crore.
Pandey is optimistic about the growth potential of the residential segment and expects to add a few more plots of land for future development this month. The company assesses various proposals from landlords.
In the entire fiscal 2022-23, Godrej Properties had acquired plots with a revenue potential of over Rs 32,000 crore post-development.
Earlier this week, Godrej Properties bought 6.46 hectares of land in Noida for Rs 506 crore to develop a housing project with an estimated turnover of Rs 3,000 crore.
In a regulatory filing on Tuesday, the company said it has “declared the highest bidder and secured the allotment letter to develop a prime plot of land in Noida through an e-auction conducted by NOIDA authority.”
Located in Sector 44, Noida, the plot will offer approximately 1.4 million sq ft of development potential and an estimated revenue potential.
This will be Godrej Properties’ sixth project in Noida.
On March 4, Godrej Properties said it has entered into a joint venture on a profit-sharing basis to develop a 62-acre township in Bengaluru with an estimated revenue potential of Rs 5,000 crore. Spread over 62 hectares, the township project will offer approximately 5.6 million square meters of salable area, comprising mainly premium residential apartments.
Last month, Godrej Properties forayed into the Hyderabad market with the outright purchase of 12.5 acres of land for Rs 350 crore to build a housing project with an estimated revenue potential of Rs 3,500 crore.
Godrej Properties, part of the business conglomerate Godrej Group, has a large presence in Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru and Pune.
On the operational front, Godrej Properties’ sales bookings are likely to rise 50 percent annually this fiscal to over Rs 18,000 crore, surpassing annual expectations of Rs 14,000 crore on strong demand for its residential projects.
Godrej Group’s real estate arm sold properties worth Rs 12,232 crore in 2022-23.
In an interview with PTI last month, Pirojsha Godrej, executive chairman of Godrej Properties, said the company hoped to sell properties worth over Rs 5,000 crore during the January-March period of this fiscal, surpassing the performance of the previous two quarters repeated.
Driven by robust residential demand, Godrej Properties’ sales bookings rose 59 per cent to Rs 13,008 crore during the April-December period of this fiscal, compared to Rs 8,181 crore in the year-ago period.
On the financial front, Godrej Properties reported an 11 percent increase in consolidated net profit to Rs 62.72 crore for the December quarter. Total income rose to Rs 548.31 crore in the quarter, compared to Rs 404.58 crore in the year-ago period.
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First print: March 6, 2024 | 10:32 am IST