Realty major Macrotech Developers Ltd on Thursday announced its entry in the Bengaluru market and has formed a joint venture to develop its first housing project with an estimated sales bookings value of Rs 1,200 crore.
In a regulatory filing, Macrotech Developers said it will acquire 100 per cent equity of G Corp Homes to make foray into the Bengaluru market.
Macrotech Developers, which markets its properties under Lodha brand, has a significant presence in Mumbai Metropolitan Region and Pune.
"The company's first project in Bengaluru has been signed through the JDA (joint development agreement) route by acquiring 100 per cent equity shares of a company namely G Corp Homes Pvt Ltd," Macrotech said.
G Corp Homes has been acquired for Rs 21 crore.
Property consultant Anarock facilitated the deal.
The project is located adjacent to Manyata Tech Park.
"The project has GDV (gross development value) potential of around Rs 1,200 crore and saleable area of around 1.3 million square feet," the company said. The project launch is expected in next 6-12 months.
Macrotech said Bengaluru will be the third housing market where the company's residential developments will be available for the consumers, thereby covering nearly 2/3rd (by value) of the housing market of the top-7 Indian cities.
This follows the company's successful expansion in Pune where it now has two operating projects and several more to be launched in FY23.
"On the back of strong underlying housing demand as well as consolidation in the industry, the company expects to grow its pre-sales by over 20 per cent CAGR (compound annual growth rate) in the medium term," Macrotech said.
The entry into Bengaluru market will be one of the drivers of sustainable, low-risk growth, it added. Macrotech said the company has recruited Rajendra Joshi as CEO for the Bengaluru market.
Joshi last served as the head of residential business for Brigade group and prior to that, he worked with various developers, including Mahindra Lifespaces.
Macrotech Developers is targeting a 27 per cent growth in its sales bookings during current fiscal year at Rs 11,500 crore on better demand prospects and strong pipeline of new launches. Its sales bookings stood at Rs 9,000 crore in last fiscal year.