Godrej Properties, the real estate arm of the renowned business conglomerate Godrej Group, has acquired two plots in Gurugram for around Rs 900 crore. The company aims to develop luxury housing projects on these plots, targeting a sales revenue of Rs 3,100 crore after development of the land parcels.
The acquisition was made through an e-auction conducted by the Haryana Shehri Vikash Pradhikaran (HSVP). Godrej Properties emerged as the highest bidder and secured the letter of intent for the development of two group housing plots located in the coveted Golf Course Road micro market of Gurugram (Haryana).
Although the total purchase amount for the residential plots was not disclosed by Godrej Properties, real estate consultants estimate the deal value to be approximately Rs 900 crore. The two prime projects span over 2.76 acres and 5.15 acres, respectively, and have a combined estimated revenue potential of approximately Rs 3,100 crore.
Another real estate developer Experion Developers has also announced that it acquired a four-acre land parcel on Golf Course Road, Gurugram. Experion acquired the land for Rs 400 crore, and plans to develop it into a mixed-use space comprising office and retail projects.
Godrej Properties has been on a land acquisition spree, with multiple land parcels across Delhi-NCR and different parts of the country being bought by the developer. The developer, which followed a low-capital business model by partnering with land owners instead of acquiring land parcels, is now putting its money in land.
Over the past two years, the company has pursued an aggressive land acquisition strategy through outright deals and partnerships with landowners. This approach aims to create a robust development pipeline and further expand the company’s business.
The developer, a renowned player in the Indian real estate market, primarily focuses on the development of residential projects in key areas such as Delhi-NCR, Mumbai Metropolitan Region, Bengaluru, and Pune.
In an interview with an Indian news agency in May 2023, Pirojsha Godrej, Executive Chairman of Godrej Properties, said the company plans to acquire multiple land parcels during the current fiscal year (2023-24), with a sales revenue potential of around Rs 15,000 crore after development.
During the financial year 2022-23, Godrej Properties grew its sales bookings by 56% to a record high of Rs 12,232 crore, primarily comprising housing properties. For the current fiscal year, the company targets sales bookings of over Rs 14,000 crore.
In FY2022-23, the company’s net profit increased to Rs 571.39 crore from Rs 352.37 crore the previous year. The total income also witnessed substantial growth, reaching Rs 3,039 crore compared to Rs 2,585.69 crore in FY2021-22.
The housing market in India has experienced a robust revival following the second wave of the Covid-19 pandemic that occurred between April and June 2021. Major players in the real estate sector have reported strong growth in their sales bookings, prompting them to acquire additional land parcels to meet the rising demand.