Godrej Properties inks pact to develop 7-lakh-sq-ft residential project in Mumbai

April 7, 2022

Godrej Properties inks pact to develop 7-lakh-sq-ft residential project in MumbaiGodrej Properties, real estate development arm of the Godrej Group, has extended its existing arrangements with Mumbai-based property developer Shivam Realty to develop a residential group housing project, off Akurli crossroad at Hanuman Nagar of Mumbai’s Kandivali suburb.

This project is an extension of Godrej Tranquil and Godrej Nest and will offer around 7 lakh sq ft of saleable area. To be developed as a modern residential project comprising of apartments of various configurations, it is estimated to have booking value potential of around Rs 1,000 crore.

“We are pleased to add this project to our portfolio. Kandivali is a developed micro-market and extending our existing projects in the location fits well with our strategy of deepening our presence in key micro markets across India,” said Mohit Malhotra, MD & CEO, Godrej Properties,

The land parcel is strategically located with easy access to the Western Express Highway and offers a well-developed social and civic infrastructure with multiple schools, hospitals, retail malls, residential and commercial spaces in close proximity.

The Godrej Group company is looking to leverage its brand and financial position to tap consolidation opportunities through distress situations arising in the real estate sector.

Last week, the company acquired a 9-acre land parcel in the residential micro-market of Pimpri-Chinchwad in Pune. The project with developable potential of around 1.7 million sq ft of saleable area has an estimated revenue potential of around Rs 1,400 crore based on the current business assumptions.

In December, the developer entered into a joint venture with realty developer TDI Group to develop an ultra-luxury residential project in New Delhi’s Connaught Place. The project is estimated to have a developable potential of around 1.25 lakh sq ft saleable area comprising primarily residential apartments of various configurations.

Prior to that, in November, the company had acquired a 16-acre prime land parcel in Bangalore’s fastest developing micro-market of Sarjapur to develop a mid-income housing project.

Industry experts believe the ongoing market consolidation in favour of large and established developers will gain momentum owing to their better execution ability and access to liquidity in the current market environment than that for smaller developers.

The company has also been raising funds to drive consolidation with the use of additional capital and to significantly strengthen its development portfolio.

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