Godrej Properties is expanding its presence in Pune with the acquisition of an 11-acre land parcel in Hinjewadi, a prime IT hub. This new project will feature mixed-use development, including housing and retail, with a potential of 2.2 million square feet and an estimated revenue of INR 1,800 crore. This move highlights Godrej Properties' confidence in Pune's real estate market, driven by its strong IT sector, educational institutions, infrastructure development, and pleasant climate. Their strategy includes a recent debut in Hyderabad and is supported by robust financial performance, despite a minor GST demand challenge.
Godrej Properties, a real estate developer in India, has set its sights on further growth in Pune with the acquisition of a new land parcel. The newly acquired land spans approximately 11 acres and is situated in Hinjewadi, a well-established IT hub in Pune. Godrej Properties plans to develop a mixed-use project on this land, encompassing both group housing (apartments) and high-street retail. The project boasts a developable potential of approximately 2.2 million square feet, translating to an estimated revenue potential of INR 1,800 crore. This significant investment highlights Godrej Properties' strong belief in Pune's continued market growth. The business sold its 5% equity holding in Godrej Green Homes (GGHPL) to Godrej Fund Management and Investment Advisors (GFMIAPL) for INR 46.70 crore.
Pune's real estate market thrives due to several factors. The city's strong IT presence attracts numerous companies, driving demand for housing and commercial spaces. As an educational hub, it hosts prestigious universities, drawing students and young professionals who need rental accommodations. Continuous infrastructure development, including better roads and ongoing projects, enhances connectivity and appeal. Additionally, Pune's pleasant climate compared to other major Indian cities makes it a desirable place to live and work. These factors collectively contribute to Pune's attractiveness in the Indian real estate market.
Godrej Properties is not alone in recognizing Pune's potential. Other major real estate developers, like Birla Estates, have also recently acquired land parcels in the city. Birla Estates has bought a 16.5-acre land tract in Manjri, Pune, alongside Godrej Properties. The land parcel has a development potential of 32 lakh sq ft and is anticipated to generate INR 2,500 crore in revenue. This increased activity from prominent players suggests a flourishing market brimming with promising opportunities for developers and investors.
On February 21st, 2024, Godrej Properties marked its debut in Hyderabad by acquiring 12.5 acres of land in Rajendra Nagar. This project, targeting premium residential apartments, boasts a projected saleable area of 4 million sq. ft. and an estimated revenue potential of INR 3,500 crore. The Pune acquisition further strengthens their national footprint, showcasing their confidence in the growth potential of both cities.
This expansionary strategy comes amidst a period of robust financial performance for Godrej Properties. Their Q3 FY 23-24 results, released on February 13th, 2024, highlighted a 6% year-on-year rise in consolidated net profit to INR 62.3 crore and an impressive 68.4% surge in revenue to INR 330.4 crore. While sequential declines in profit and revenue were noted, the company achieved a significant 76% year-on-year increase in booking value to INR 5720 crore and a 43% rise in collections to INR 2411 crore. This financial strength provides a solid foundation for their ongoing expansion plans.
It's worth noting that both the Hyderabad and Pune acquisitions prioritize premium residential development. This aligns with Godrej Properties' established expertise in this segment and caters to the growing demand for high-quality living spaces in these key Indian cities.
While Godrej Properties navigates this growth trajectory, a recent GST demand order of INR 10.45 crore, issued on January 8th, 2024, presents a minor hurdle. The company plans to contest this order, asserting that it has no significant impact on their finances or operations.
Overall, Godrej Properties' land acquisition in Pune signifies their commitment to strategic expansion in promising markets. Backed by strong financial performance and a focus on premium residential development, the company appears well-positioned to capitalize on the growing demand for quality housing in India.
Advertisement
Facebook
Whatsapp
