Godrej Properties on Wednesday said it has acquired a 7-acre land parcel in Bengaluru for development of a premium housing project that has an estimated Rs 750 crore revenue potential.
The company did not disclose the price at which the land has been acquired. The name of the seller was also not mentioned. In a regulatory filing, Godrej Properties said it has acquired a land parcel that is strategically located in the immediate vicinity of Indiranagar, Bengaluru.
"Spread across approximately 7 acre, the project is estimated to have a developable potential of approximately 0.6 million square feet of saleable area and will be developed as a premium residential project comprising apartments of various configurations," the company said.
Mohit Malhotra, MD & CEO, Godrej Properties, said, the availability of land parcels and infrastructure development has turned Bengaluru into a mature real estate market.
There is a strong demand for high-end residential development, he said.
“Indiranagar is an important micro market for us and we are happy to add this land parcel to our portfolio. This will further strengthen our presence in Bengaluru and complement our strategy of deepening our presence in key micro markets across India's leading cities," Malhotra said.
On the basis of current business assumptions, Godrej Properties said the project has an estimated booking value potential of Rs 750 crore.
In August, Executive Chairman Pirojsha Godrej had said the company would like to add projects with gross development value (GDV) of Rs 15,000 crore in this fiscal year to sustain growth in sales bookings.
"The pipeline is super strong. So I think I'm quite hopeful. We will have a large number of big announcements in the next few quarters," Pirojsha had said in an interview with PTI when asked about acquisition of new land parcels for future development.
As part of its expansion plan, the Godrej Group company is acquiring land outright and also entering into Joint Development Agreements (JDAs) to develop residential projects. It focuses on four cities -- Delhi-NCR, Mumbai Metropolitan Region, Pune and Bengaluru.
In February, Pirojsha had announced plans to invest Rs 7,500 crore over next 12-18 months to expand its portfolio.
Godrej Properties clocked sales booking of Rs 7,861 crore in 2021-22 and is targeting Rs 10,000 crore in FY23.
In line with the target, the company's sales booking jumped five-fold to Rs 2,520 crore during April-June period on a year-on-year basis-- the highest ever first quarterly sales.
Godrej Properties is one of the leading real estate developers in the country.