The project is estimated to have a development potential of around 1.5 million sq ft saleable area comprising primarily residential apartments of various configurations.
“Infrastructure development in Bangalore has increased demand for housing, especially from the mid and upper-mid income group. Sarjapur is an important micro market for us and we are happy to add this land parcel to our portfolio,” said Mohit Malhotra, MD & CEO, Godrej Properties.
According to him, the transaction for this land parcel will help the company further expand its presence in Bangalore and complements its strategy of deepening presence in key micro markets across India’s key cities.
Sarjapur has emerged as one of the most preferred residential locations in Bangalore and also has good connectivity to the information technology and IT-enabled services (IT/ITES) belt at Bellandur on Outer Ring Road and several key hubs of the city.
The site is strategically located close to the Sarjapur main road and offers a well-developed social and civic infrastructure with multiple schools, hospitals, retail, residential, and commercial spaces in close proximity.
In September, the company entered into an agreement to redevelop a 7.5-acre land parcel in central Mumbai’s Wadala locality. The project is expected to offer about 1.6 million sq ft of saleable area comprising primarily residential apartments of various configurations.
The company is looking to leverage its brand and financial position to tap consolidation opportunities through distress situations arising in the real estate sector.
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.
Last year, Godrej Properties had raised Rs 1,000 crore through non-convertible debentures on a private placement basis for a term of three years at 7.5%. Prior to that, it had raised Rs 2,100 crore last year through a qualified institutional placement (QIP).
In March this year, the developer raised Rs 3,750 crore through another QIP of 25.9 million equity shares to global investors including Goldman Sachs Funds, government of Singapore and Invesco Oppenheimer Developing Markets Fund.
The company has raised these funds to drive consolidation through this additional capital and use it to significantly strengthen its development portfolio.