MUMBAI: Godrej Properties, realty development arm of the Godrej Group has entered into an agreement to acquire a 20-acre land parcel in Kalyan near Mumbai.
The company is planning residential development on the plot and expects around 1.5 million sq ft saleable area. The project will comprise primarily residential apartments of varied configurations with a small amount of retail and commercial space.
“We are happy to add this new project in Kalyan to our portfolio. This fits well with our strategy of deepening our presence in key markets across India’s leading cities,” said Pirojsha Godrej, Executive Chairman, Godrej Properties. Ends
In an exclusive interaction with ET in August, Godrej had stated that the company is looking to leverage its robust brand and financial position to tap consolidation opportunities through distress situations arising in the real estate sector due to the ongoing pandemic.
According to him, Godrej Properties is well prepared to tap growth opportunities that may present themselves given that there is some distress in the sector with a lot of developers struggling.
In July, Godrej Properties had raised Rs 1,000 crore through non-convertible debentures on a private placement basis for a term of 3 years at 7.5%. It had also raised Rs 2,100 crore last year through a qualified institutional placement (QIP).
Apart from its independent developments, Godrej Properties has already been using asset light and capital efficient joint developments and alliances to support its growth and market share.
The company has reported consolidated net loss of Rs 20 crore in the June quarter that was marked by Covid19 outbreak’s impact on the economy. Total income for the quarter had declined 76.7% from a year ago to Rs 165 crore. Ends