Continuing with a land-buying spree to expand business, realty firm Godrej Properties has acquired two plots in Gurugram for around Rs 900 crore to build luxury housing projects and is targeting Rs 3,100 crore sales revenue post-development.
In a regulatory filing, Godrej Properties said the company has "emerged as the highest bidder and secured the letter of intent to develop two group housing plots through an e-auction conducted by Haryana Shehri Vikash Pradhikaran (HSVP)".
These two plots are located on Golf Course Road micro market, and the company will develop luxury housing projects.
Godrej Properties did not disclose the total purchase amount for these two residential plots.
However, real estate consultants estimated the deal value to be around Rs 900 crore.
"The two prime projects spread over 2.76 acres and 5.15 acres, respectively, would have a combined estimated revenue potential of about Rs 3,100 crore," Godrej Properties said.
Godrej Properties, the real estate arm of business conglomerate Godrej Group, is one of the leading real estate developers in the country. It mainly focuses on Delhi-NCR, Mumbai Metropolitan Region, Bengaluru and Pune for the development of residential projects.
For the last two years, the company has been very aggressive in acquiring land across major cities through outright deals and also by forming partnerships with landowners as part of its strategy to expand business and create a healthy future development pipeline.
In May, Godrej Properties Executive Chairman Pirojsha Godrej told PTI in an interview that the company will acquire multiple land parcels this fiscal having a sales revenue potential of around Rs 15,000 crore post-development.
Last fiscal, Godrej Properties was very aggressive on land acquisition and added 18 new land parcels with a sales potential of Rs 32,000 crore post-development.
During the financial year 2022-23, sales bookings rose 56 per cent to an all-time high of Rs 12,232 crore, and almost all were housing properties. This fiscal year, it is targeting over Rs 14,000 crore of sales bookings.
In the 2022-23 fiscal, the company's net profit increased to Rs 571.39 crore from Rs 352.37 crore a year ago. The total income also grew to Rs 3,039 crore last fiscal from Rs 2,585.69 crore in FY2021-22.
The housing market has revived strongly after the second wave of the Covid pandemic that hit India in April-June 2021. All major listed players are reporting strong growth in their sales bookings, prompting them to acquire more land parcels to encash demand.