Godrej Properties on Friday said it has bought 18.6 acre land at Kandivali in Mumbai to develop a premium housing project and expects sales revenue of about Rs 7,000 crore.
In a regulatory filing, the company informed that the project would have a developable potential of about 3.72 million square feet with an estimated revenue potential of around Rs 7,000 crore.
The project will comprise primarily premium residential apartments with supporting retail spaces.
This will be one of the company's largest residential developments, and it significantly strengthens the firm's presence in the western suburbs of Mumbai.
Godrej Properties highlighted that this is the 8th project addition so far this financial year and "takes the cumulative expected booking value from projects added in FY23 to approximately Rs 16,500 crore."
Godrej Properties, one of the leading real estate developers in the country, had given a full year guidance of adding projects with a booking value potential of Rs 15,000 crore.
To expand its business and create future development pipeline, Godrej Properties acquires land parcels outrightly and also enters into joint development agreements (JDAs) with landowners.
Mohit Malhotra, MD & CEO, Godrej Properties, said the company has added a large and strategically important project in Mumbai.
"This project will allow us to significantly increase our market share in Mumbai over the next several years and fits within our strategy of deepening our presence across key real estate micro markets," he said.
Malhotra said the company would aim to build an outstanding residential community that creates long-term value for its residents.
The land is strategically placed in a prime locality with excellent access to the Western Express Highway, Metro & Suburban Railway Stations, the company said.
Godrej Properties, a part of business conglomerate Godrej Group, focuses on four key markets -- Mumbai Metropolitan Region (MMR), Delhi-NCR, Bengaluru and Pune, although it has a presence in Chennai, Kolkata, Kochi, Ahmedabad, Chandigarh and Nagpur as well.
Godrej Properties has set a target of Rs 10,000 crore sales bookings for 2022-23 as against Rs 7,861 crore registered during the last fiscal year.
It has already clocked a 60 per cent growth in sales bookings during the first half of this fiscal year at Rs 4,929 crore as against Rs 3,072 crore in the year-ago period.
In an interview with PTI last month, Godrej Properties Executive Chairman Pirojsha Godrej had noted that the housing demand continued to be strong despite hike in interest rates on home loans.
He expected a robust sales bookings in the second half of this fiscal.
On financial front, Godrej Properties has reported a 54 per cent increase in consolidated net profit at Rs 54.96 crore in the quarter ended September 2022 on higher income.
Its net profit stood at Rs 35.73 crore in the year-ago period.
Total income also rose to Rs 369.20 crore in the second quarter from Rs 334.22 crore a year ago.