Godrej Properties Expands with Major Land Acquisition in Indore
Godrej Properties, a leading real estate developer, acquires 24 acres of land in Indore for around Rs 200 crore to develop premium residential plots, marking a significant expansion in tier II cities.
Real EstateLand AcquisitionGodrej PropertiesIndoreResidential PlotsReal Estate NewsJan 12, 2025
This acquisition is part of the company's strategy to capitalize on the strong demand for residential properties, particularly in tier II and III cities.
The development on this land will primarily comprise premium plotted residential units, offering an estimated saleable area of 6.20 lakh square feet with a potential revenue of around Rs 500 crore.
Godrej Properties has a strong presence in major metropolitan regions such as the Mumbai Metropolitan Region (MMR), Delhi-NCR, Pune, and Bengaluru.
However, the company has been increasingly focusing on tier II and III cities for residential plotted development projects.
This move is aimed at tapping into the growing demand for affordable and premium housing in these areas.
This is not the first significant land acquisition for Godrej Properties in Indore.
In July 2024, the company acquired 46 acres of land on the Indore-Ujjain Road.
These acquisitions highlight the company's aggressive expansion strategy and its commitment to maintaining a strong land bank.
The company acquires land parcels through outright purchases and also forms partnerships with landowners for joint development projects.
In the first six months of the current fiscal year, Godrej Properties has added eight new land parcels, providing a total estimated saleable area of about 11 million square feet and a total estimated booking value potential of around Rs 12,650 crore.
The company has continued to add more land parcels in the third quarter, further solidifying its position in the market.
Godrej Properties' aggressive land buying and the launch of new projects have propelled it to become the largest listed real estate company in terms of annual sales bookings during the 2023-24 fiscal year.
The company's sales booking value grew by 89% annually to over Rs 13,800 crore in the April-September period of the 2024-25 fiscal year.
With a target of achieving Rs 27,500 crore worth of sales bookings in the current financial year, Godrej Properties is well on track to meet and exceed its goals.
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, stated, 'This capital raise will allow Godrej Properties to significantly enhance its business development portfolio, while maintaining a tremendously strong balance sheet.
We remain focused on building scale through continued market share gains and margin expansion.'
The company's strategic land acquisitions and robust financial position are key factors in its continued growth and success in the competitive real estate market.
Frequently Asked Questions
What is the size of the land acquired by Godrej Properties in Indore?
Godrej Properties has acquired a 24-acre land parcel in Indore.
What is the estimated cost of the land in Indore?
The land is estimated to have been purchased for around Rs 200 crore.
What type of development will Godrej Properties undertake on the acquired land?
The development will primarily comprise premium plotted residential units.
What is the estimated saleable area of the development?
The estimated saleable area is 6.20 lakh square feet.
What is the estimated revenue potential of the development?
The estimated revenue potential is around Rs 500 crore.
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