Godrej Properties on land-buying spree, acquires 24 acre in Indore for about Rs 200 cr

New Delhi, Jan 12 (PTI) Real estate company Godrej Properties has purchased a 24-acre land parcel in Indore for around Rs 200 crore to develop housing plots, as part of its strategy to expand business amid strong demand for residential properties.

Godrej Properties, one of the leading real estate developers in the country, focuses on Mumbai Metropolitan Region (MMR), Delhi-NCR, Pune and Bengaluru markets for group housing projects.

For residential plotted development projects, the company has been buying land in tier II-III cities.

Godrej Properties has acquired a 24-acres land parcel in Indore.

The company did not divulge the total cost of the land, however, market sources said the land has been purchased at around Rs 200 crore.

The development on this land will primarily comprise premium plotted residential units and will offer an estimated saleable area of 6.20 lakh square feet with an estimated revenue potential of around Rs 500 crore.

After acquiring 46 acres in July 2024 on the Indore-Ujjain Road, this will be the company’s second acquisition in Indore.

To expand its housing business, Godrej Properties acquires land parcels through outright purchases as well as forming partnerships with landowners for the joint development.

Godrej Properties added eight new land parcels in the first six months of this fiscal with a total estimated saleable area of about 11 million square feet and total estimated booking value potential of around Rs 12,650 crore.

The company has added many land parcels in the third quarter of this fiscal. During the current January-March quarter, it has already acquired land in Indore.

Helped by the company’s aggressive land buying and launch of new projects, Godrej Properties became the largest listed real estate company during 2023-24 in terms of annual sales bookings and it is likely to retain the position going by the performance in the first half of this financial year.

The company’s sales booking value grew 89 per cent annually to over Rs 13,800 crore in April-September period of 2024-25 fiscal.

The company has a target of achieving Rs 27,500 crore worth of sales bookings in the current 2024-25 financial year.

During the last fiscal, Godrej Properties sales bookings jumped 84 per cent to a record Rs 22,527 crore, from Rs 12,232 crore in the preceding year.

To fund its land acquisition plan, Godrej Properties last month raised Rs 6,000 crore by selling shares to institutional investors, including Singapore sovereign wealth firm GIC and SBI Pension, through qualified institutional placement (QIP) route.

On the use of the QIP fund, Pirojsha Godrej, Executive Chairperson, Godrej Properties, had said, “This capital raise will allow Godrej Properties to significantly enhance its business development portfolio, while maintaining a tremendously strong balance sheet. We remain focused on building scale through continued market share gains and margin expansion.”