The real estate arm of Godrej enterprise, Godrej Properties is expanding its business development guidance of Rs. 15,000 crore for the current financial year. According to the statement of Pirojsha Godrej, executive chairperson, Godrej Properties, this extraordinary growth has come due to a robust deal pipeline and ongoing consolidation in the real estate market across the country.
Godrej Group is eyeing on acquiring new projects, which can be launched as soon as possible, rather than continuing projects to beef up the portfolio.
In an interview with Economic Times, Godrej stated, “Our whole idea has been to do business development for projects that we plan to develop immediately. In that sense, we are not using a typical model of land banking or keeping land for later development, and we now feel we have a portfolio that can deliver the kind of growth we want over the next two to three years.”
During the last week, the company entered into the Hyderabad property market with the acquisition of a 12.5-acre land parcel in Rajendra Nagar locality. The project is having a revenue potential of Rs. 3,500 crore with an estimated 4 million sq ft development, based on current business assumptions.
This latest acquisition has pushed the developer’s count to seven additions so far in this financial year with an estimated booking value of Rs. 11,925 crore. Before this, the company constructed a group housing project in Bengaluru in the December quarter with an estimated booking value of Rs. 1,250 crore.
Godrej is pretty sure that, it will exceed its booking guidance of Rs. 14,000 crore for the current financial year and deliver its best-ever annual performance in terms of cash collections and project deliveries. The company is expecting to deliver over 12.5 million sq ft in the ongoing financial year.
The new business development would be more focused to the targeted markets that the company believes its portfolio still needs strengthening in.
Pirojsha Godrej, further added, our whole idea has been to do business development for projects that we plan to develop immediately. In that sense, we are not using a typical model of land banking or keeping land banking or keeping land for later development. And we now feel we have a portfolio that can deliver the kind of growth we want over the next two to three years.”
The quarter of December was marked 'Godrej Properties' highest ever quarterly sales for the second quarter in a row and witnessed a total booking value of Rs. 5,720 crore with 4.34 million sq ft of area sold. The developer’s consolidated net profit grew 6% year over year to Rs. 62 crore in in the quarter to December. Total profit of the company jumped 43% to Rs. 524 crore.
According to the industry experts, the ongoing market consolidation in favour of large and established developers, who will exhibit a better execution ability and access to liquidity in the current market environment than those smaller developers. This will help to increase opportunities and market share of the group.
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