Amid strong housing demand, Godrej Properties Ltd has acquired multiple land deals so far this fiscal that could generate around Rs 20,000 crore in revenue.
According to Godrej Properties’ guidance for 2023-24 fiscal, the company will add land parcels through outright purchases and partnerships with landowners worth Rs 15,000 crore.
Godrej Properties Managing Director and CEO Gaurav Pandey said the company has achieved its annual guidance of Rs 15,000 crore in new business development through the acquisition of two land parcels earlier this week.
In the first nine months of this fiscal, we added new projects worth Rs 8,425 crore.
Two outright land purchases have been made in Hyderabad and Noida this quarter, while a joint venture has been formed in Bengaluru.
So far this fiscal year, these three acquisitions will generate revenue of around Rs 11,500 crore, bringing the total to around Rs 20,000 crore.
Considering the growth potential in the housing sector, Pandey expects to add several more land parcels this month. The company is evaluating several proposals from landlords.
During the entire 2022-23 fiscal year, Godrej Properties acquired land parcels with a revenue potential of over Rs 32,000 crore.
Godrej properties acquired land
In a deal announced earlier this week, Godrej Properties acquired 6.46 acres of land in Noida for Rs 506 crore to build a housing project with an estimated revenue of Rs 3,000 crore.
During an e-auction conducted by the NOIDA Authority on Tuesday, the company was declared the highest bidder and secured the allotment letter for a prime land parcel in Noida.
In Sector 44, Noida, the land parcel offers an estimated revenue potential of around 1.4 million square feet (14 lakh square feet) for development.
In Noida, this will be Godrej Properties’ sixth project.
Godrej Properties announced on March 4 that it had entered into a joint venture for the development of a 62-acre township in Bengaluru with a revenue potential of Rs 5,000 crore. With a total saleable area of 5.6 million (56 lakh) square feet, the township project covers 62 acres.
For Rs 350 crore, Godrej Properties bought 12.5 acres of land in Hyderabad to build a housing project with an estimated revenue potential of Rs 3,500 crore.
Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru, and Pune are major markets for Godrej Properties, part of the Godrej Group.
On the operational front, Godrej Properties is likely to increase its sale bookings by 50 percent this fiscal year to over Rs 18,000 crore, exceeding its annual guidance of Rs 14,000 crore.
In 2022-23, Godrej Group’s real estate arm sold properties worth Rs 12,232 crore.
Pirojsha Godrej, the Executive Chairperson of Godrej Properties, told PTI last month that the company hopes to sell properties worth over Rs 5,000 crore during the January-March period of this fiscal year, similar to the previous two quarters.
In April-December of this fiscal, Godrej Properties’ sale bookings grew 59 percent to Rs 13,008 crore from Rs 8,181 crore in the previous year.
In the December quarter, Godrej Properties reported an 11 percent rise in consolidated net profit at Rs 62.72 crore. Total income rose to Rs 548.31 crore from Rs 404.58 crore a year ago.
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