The project is estimated to have development potential of approximately 1.5 million square feet of salable area comprising primarily residential apartments of various configurations.
“The development of infrastructure in Bangalore has increased the demand for housing, especially from middle and upper middle income groups. Sarjapur is an important micro-market for us and we are happy to add this plot of land to our portfolio, ”said Mohit Malhotra, Managing Director and CEO of Godrej Properties.
According to him, the transaction for this plot of land will help the company to further expand its presence in Bangalore and complements its strategy of deepening its presence in key micro-markets in major Indian cities.
Sarjapur has become one of the most popular residential areas in Bangalore and also has good connectivity with the Information Technology and IT Services (IT / ITES) belt in Bellandur on the outer ring road and several key centers. from the city.
The site is strategically located close to the main road to Sarjapur and offers a well-developed social and civic infrastructure with several schools, hospitals, shops, residential and commercial spaces nearby.
In September, the company struck a deal to redevelop a 7.5-acre plot of land in the town of Wadala in central Mumbai. The project is expected to provide approximately 1.6 million square feet of salable area comprising primarily residential apartments of various configurations.
The company seeks to leverage its brand and financial position to exploit consolidation opportunities in distress situations arising in the real estate industry.
Industry experts believe that the ongoing market consolidation in favor of large established developers will accelerate due to their better execution capacity and access to liquidity in the current market environment than that of small developers.
Last year, Godrej Properties raised Rs 1,000 crore through non-convertible debentures on a three-year private placement basis at 7.5%. Prior to that, he had raised Rs 2,100 crore last year through Qualified Institutional Placement (QIP).
In March of this year, the developer raised Rs 3,750 crore with another QIP of 25.9 million shares to global investors including Goldman Sachs Funds, the Singapore government and Invesco Oppenheimer Developing Markets Fund.
The company raised these funds to promote consolidation thanks to this additional capital and use it to considerably strengthen its development portfolio.