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Godrej Properties: Godrej Properties acquires 109 acres in Nagpur, plans 2.2 mln sq ft residential development

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Godrej Properties, the real estate development arm of the Godrej Group, has acquired nearly 109 acres of land parcel in Nagpur. The company is planning to develop primarily plotted residential units on this land parcel and estimates saleable area of 2.2 million sq ft.

The land parcel is located near recently operationalised Samruddhi Mahamarg, the expressway connecting the cities of Mumbai and Nagpur and MIHAN Special Economic Zone (SEZ).

“The addition to this new project to our portfolio enhances our presence in Nagpur and fits within our strategy of strengthening our presence across key micro-markets in India,” said Gaurav Pandey, MD & CEO, Godrej Properties.

The location offers a well-developed social and municipal infrastructure including hospitals, schools, retail, and entertainment venues. The company did not disclose the deal size.

The Godrej Group company has been looking to leverage its brand and financial position to tap consolidation opportunities in the real estate sector through outright acquisitions, alliances, and joint development agreements for land parcels.

In July, Godrej Properties emerged as the highest bidder for two luxury group housing plots in Golf Course Road micro-market of Gurugram. The two prime projects spread over 2.76 acres and 5.15 acres, respectively, are estimated to have a combined revenue potential of around Rs 3,100 crore.It acquired a land parcel spread over 4 acres near Koregaon Park, an upmarket residential area in Pune in April. The company is planning to primarily develop a luxury group housing project on this land parcel.The proposed project will have a developable potential of around 750,000 sq ft with an estimated revenue potential of around Rs 1,000 crore based on the current business scenario.

In March, the developer acquired a land parcel spread over 28 acres near Outer Ring Road and Whitefield neighbourhood in Bengaluru to develop a mixed-use project consisting of apartments and retail development.

Prior to that, the company had acquired Bollywood producer, director and actor Raj Kapoor’s bungalow in Mumbai’s Chembur suburb to develop a premium residential project.

Godrej Properties recorded 174% on-year growth in net profit at Rs 125 crore for the quarter ended June on the back of 251% rise in total income at Rs 1,315 crores.

Industry experts believe the ongoing market consolidation in favour of large and established developers will gain momentum owing to their better execution ability and access to liquidity in the current market environment than that for smaller developers.

Transactions for land parcels have started to gather momentum again with many deals including outright acquisitions and joint ventures in key property markets of Mumbai, Pune, Chennai, Hyderabad and Bengaluru either being closed or expected to close soon.

The increased demand for land parcels is led by sustained recovery in the housing market and buoyed warehousing and data centres space.

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