Real Estate major Macrotech Developers Ltd. is planning to invest Rs. 3,500-4,000 crore this fiscal to acquire new land parcels by outright and signed a deal of joint development agreement with landlords for building housing projects as part of their strategic development plan to use the golden opportunity surge in demand in luxury real estate properties.
Macrotech Developers markets their properties under Lodha brand is a famous real estate developer in India. It has proved its excellence in this sector and expanded their prominence in major metro cities of India like Mumbai Metropolitan Region (MMR) and Pune. Now they have entered in the south Indian state and started with Bangalore.
The Managing Director and Chief Executive Officer Abhishek Lodha told that, the company intends to invest 3500 crore to 4,000 crore on new business development that implies they are planning to acquire land parcels for future development.
He added that, the total spend on "new business development" will be about "Rs. 35 to 40 billion", he said, adding that there would be some outflow for land acquired in previous years. In the case of joint development agreements (JDAs) with landlords, real estate developers pay some advance amount to landowners. Builders share revenue or area with the landlords.
The company said in a statement, "Our target mix is 60% owned land and 40 per cent from JDAs. You know that we own a very large amount of owned land. Therefore to maintain this 60:40 mix is likely that the incremental GDV (gross development value) addition will be perhaps 50% from JDAs and 50% from owned land."
In the last fiscal year, Macrotech Developers had included few new land parcels to build housing projects with a potential value of over Rs.2000crore.
Lodha further added, "In terms of our business development, we added about Rs. 20,000 crore of GDV through new projects, which was higher than our guidance of Rs. 17,500 crore. Both on JDAs as well as on outright, we continue to see a steady and strong pipeline of new projects coming in."
The Macrotech Developers which is based in Mumbai has recorded a 20% growth in its sale bookings (pre-sales) to a record Rs.14,520 crore last fiscal from Rs. 12,060 crore in the 2022-23 financial year.
Recently, Macrotech Developers reported an 11% decline in its consolidated net profit to Rs. 665.5 crore in the March quarter from Rs. 744.4 crore in the year-ago period. The company's total income grew to Rs. 4,083.9 crore in the quarter under review from Rs. 3,271.7 crore a year ago. The total income of the company stood at Rs. 10,469.5 crore last fiscal over Rs. 9,611.2 crore in the 2022-23 fiscal.
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