Godrej Properties Ltd will develop a 62-acre township in Bengaluru with an estimated revenue potential of Rs 5,000 crore. In a regulatory filing, the company informed that it has entered into definitive agreements with a land owning entity to develop a large township project in North Bengaluru under a profit-sharing model.
Spread across 62 acres, the township project will offer around 5.6 million (56 lakh) square feet of saleable area comprising primarily premium residential apartments of various configurations.
While an agreement for sale of land, including this 62 acres was entered into in 2014, the development could not commence at that time, the filing said. Over the past few months, the 62-acre development opportunity has crystallized, it added.
Godrej Properties, a part of business conglomerate Godrej Group, expects to launch the first phase of development on this land in the upcoming financial year. “The estimated booking value from the project is Rs 5,000 crore,” Godrej Properties said.
The company has a major presence in Delhi-NCR, Mumbai Metropolitan Region (MMR), Bengaluru and Pune. Godrej Properties has recently made a foray into the Hyderabad market.
On an operational front, Godrej Properties’ sale bookings are likely to rise 50 per cent annually to over Rs 18,000 crore this fiscal year, beating the annual guidance on strong demand for its residential projects.
The real estate arm of Godrej Group sold properties worth Rs 12,232 crore in 2022-23 and had given sales guidance of Rs 14,000 crore for the current fiscal.
Driven by robust housing demand, Godrej Properties’ sale bookings rose 59 per cent during the April-December period of this fiscal to Rs 13,008 crore as against Rs 8,181 crore in the year-ago period.
On financial front, Godrej Properties reported an 11 per cent increase in consolidated net profit at Rs 62.72 crore for the December quarter. Total income rose to Rs 548.31 crore in the quarter from Rs 404.58 crore in the year-ago period.