Godrej Properties, realty development arm of the Godrej Group has entered into an outright transaction to acquire a 15-acre land parcel in Bengaluru’s Sarjapur locality.
The Mumbai-based real estate developer is planning to develop a group housing project on this land parcel, which has 1.6 million sq ft of potential saleable area comprising of residential apartments of various configurations.
“Bangalore is a key market for us and this project addition fits well with our strategy of deepening our presence across the country’s leading real estate markets,” said Pirojsha Godrej, Executive Chairman, Godrej Properties.
The site is strategically located and offers an extremely well developed social and civic infrastructure with multiple schools, hospitals, retail, residential, and commercial spaces in close proximity, the company said.
Sarjapur has established itself as one of the most preferred residential locations in Bangalore with good connectivity to Outer Ring Road and several other key hubs of Bangalore.
This is the third land parcel acquired by Godrej Properties since March when it forayed into Faridabad market by purchasing a 43.61-acre land parcel from BPTP.
Two weeks ago, the company had entered into an agreement to acquire a 20-acre land parcel in Kalyan near Mumbai.
Godrej Properties as part of its stated strategy is looking to leverage its robust brand and financial position to tap consolidation opportunities through distress situations arising in the real estate sector due to the ongoing pandemic.
Industry experts believe that ongoing market consolidation in favour of large and established developers to gain momentum hereon, owing to better brand, execution ability and access to liquidity in the current market environment than that for smaller developers.
In July, Godrej Properties had raised Rs 1,000 crore through non-convertible debentures on a private placement basis for a term of 3 years at 7.5%. It had also raised Rs 2,100 crore last year through a qualified institutional placement (QIP).
Apart from its independent developments, Godrej Properties has been using asset light and capital efficient joint developments and alliances to support its growth and market share.
