Godrej Properties Acquires 24 Acres in Indore for Rs 200 Crore
Godrej Properties, a leading real estate developer, has bought 24 acres of land in Indore for Rs 200 crore to develop premium housing plots. This acquisition is part of the company's strategy to expand its presence in tier II-III cities amid strong demand
Godrej PropertiesIndoreReal EstateLand AcquisitionHousing PlotsReal Estate NewsJan 12, 2025
This strategic move is aimed at developing premium residential plots to meet the growing demand for housing in the region.
Godrej Properties is well-known for its focus on key markets such as the Mumbai Metropolitan Region (MMR), Delhi-NCR, Pune, and Bengaluru, where it primarily develops group housing projects.
However, the company has been increasingly looking towards tier II-III cities for residential plotted development projects.
This acquisition in Indore marks a significant step in this direction.
Although the company did not officially disclose the exact cost of the land, market sources suggest that the purchase was made for around Rs 200 crore.
The development on this land is expected to comprise premium plotted residential units, offering an estimated saleable area of 6.20 lakh square feet.
The project has an estimated revenue potential of around Rs 500 crore.
This is not the first acquisition for Godrej Properties in Indore.
In July 2024, the company acquired 46 acres of land on the Indore-Ujjain Road.
This recent acquisition will be the company's second in Indore, further solidifying its presence in the city.
To fuel its expansion, Godrej Properties employs various strategies, including outright purchases and partnerships with landowners for joint development.
The company has been quite active in acquiring land parcels, with a total of eight new land parcels added in the first six months of the fiscal year.
These land parcels have a combined estimated saleable area of about 11 million square feet and a total estimated booking value potential of around Rs 12,650 crore.
The third quarter of the fiscal year has also seen the company adding several new land parcels.
During the current January-March quarter, Godrej Properties has already acquired additional land in Indore.
This aggressive land acquisition strategy has helped Godrej Properties become the largest listed real estate company in terms of annual sales bookings during 2023-24.
The company is expected to retain this position given its strong performance in the first half of the current financial year.
Godrej Properties' sales booking value grew by 89% annually to over Rs 13,800 crore in the April-September period of the 2024-25 fiscal year.
The company aims to achieve Rs 27,500 crore worth of sales bookings in the current fiscal year.
In the previous fiscal year, the company's sales bookings jumped by 84% to a record Rs 22,527 crore, up from Rs 12,232 crore the year before.
To fund its ambitious land acquisition plan, Godrej Properties recently raised Rs 6,000 crore by selling shares to institutional investors, including Singapore sovereign wealth firm GIC and SBI Pension, through a qualified institutional placement (QIP) route.
Pirojsha Godrej, Executive Chairperson of Godrej Properties, emphasized that this capital raise will significantly enhance the company's business development portfolio while maintaining a strong balance sheet.
The company remains committed to building scale through continued market share gains and margin expansion.
Frequently Asked Questions
What is the purpose of Godrej Properties' land acquisition in Indore?
The purpose of the land acquisition is to develop premium housing plots to meet the growing demand for residential properties in Indore.
How much land has Godrej Properties acquired in Indore recently?
Godrej Properties has acquired 24 acres of land in Indore, following an earlier acquisition of 46 acres on the Indore-Ujjain Road in July 2024.
What is the estimated revenue potential of the new project in Indore?
The new project in Indore is expected to have an estimated revenue potential of around Rs 500 crore.
How has Godrej Properties been funding its land acquisition plan?
Godrej Properties has been funding its land acquisition plan by raising Rs 6,000 crore through a qualified institutional placement (QIP) route, which included investments from institutional investors like GIC and SBI Pension.
What are the target sales bookings for Godrej Properties in the current fiscal year?
Godrej Properties aims to achieve Rs 27,500 crore worth of sales bookings in the current 2024-25 fiscal year.
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