Godrej Properties Acquires Second Hyderabad Land Parcel for ₹1,300 Cr Residential Project

Godrej Properties recently told stock exchanges that they've bought another piece of land in Hyderabad within the last month. They plan to use it for building top notch residential projects.

Early on Thursday, Godrej Properties shares opened higher but later lost their initial gains, closing in the red with a decline of 1.14%

Land Acquisition Details

The newly acquired land spans 3 acres in Kokapet strategically located near the Outer Ring Road junction. This prime location is close to the Golden Mile Road enhancing its appeal for development purposes. With an estimated potential of 1.2 million square feet of saleable area, the project is set to offer premium residential apartments. The booking value for this endeavor is projected at ₹1,300 crore.

This move marks Godrej Properties second foray into the Hyderabad market within a short span. Last month, Godrej Properties entered the Hyderabad property market by buying 12.5 acres of land for ₹350 crore. They plan to develop a housing project there with a revenue potential of ₹3,500 crore. With this purchase and the recent acquisition the total booking value potential in Hyderabad is estimated to be ₹4,800 crore.

CEO Statement

Gaurav Pandey, CEO of Godrej Properties expressed enthusiasm regarding the company's expansion in Hyderabad. He emphasized the significance of the Hyderabad market highlighting its status as one of the largest and fastest growing residential real estate markets in the country. Pandey reiterated the company's dedication to creating enduring value for residents through the development of exceptional residential communities.

The acquisition aligns with Godrej Properties' overarching strategy of developing high quality residential projects across India's premier real estate markets. Notably, the company has been proactive in securing lucrative land parcels as evidenced by multiple acquisitions during the 2023-24 fiscal year.

In addition to the Hyderabad ventures, Godrej Properties has expanded its presence through other strategic initiatives. This quarter the company made one land purchase in Noida, two in Hyderabad, and entered into a joint venture in Bengaluru highlighting its commitment to diversifying its portfolio and maximizing revenue potential.

Recent Transactions & Financial

In March alone, Godrej Properties acquired a 6.46 acre land parcel in Noida for ₹506 crore, with an estimated revenue of ₹3,000 crore. Godrej Properties mentioned that the land parcel, situated in Sector 44, Noida, has the potential for development spanning around 1.4 million square feet. They also stated that it holds an estimated revenue potential. Furthermore, the company ventured into a profit sharing joint venture to develop a 62 acre township in Bengaluru, projecting a revenue potential of ₹5,000 crores.

The real estate arm of the Godrej Group reported property sales amounting to ₹12,232 crore in the preceding fiscal year 2022-23, reflecting robust performance and market confidence in its offerings.

Final Words

Godrej Properties latest land acquisition in Hyderabad highlights its strategic expansion efforts and commitment to delivering premium residential projects. With a strong foothold in Hyderabad and continued growth initiatives across key markets the company is poised for sustained success in the real estate sector.