By Team Homes | Thursday, 15 June 2023

Godrej Properties to acquire 7.44-acre land parcel in Kolkata's New Alipore

Godrej Properties, the real estate development business of the Godrej Group, has entered into an agreement to acquire an around 7.44-acre land parcel in Kolkata’s New Alipore from West Bengal Housing Infrastructure Development Corporation Ltd. The developer has emerged as the highest bidder in an e-auction conducted by the authority.

Godrej Properties is planning to develop this land parcel as a luxury group housing project. The project will have a developable potential of approximately 9.8 lakh sq ft with an estimated revenue potential of around Rs 1,200 crore based on the current business assumptions. “The demand for luxury realty has been strong over the past few years. This will be our second luxury development in the city, and we aim to build an outstanding residential community that creates long term value for its residents,” said Gaurav Pandey, MD & CEO, Godrej Properties.

New Alipore is one of the premium locations of Kolkata with an established physical and social infrastructure. The location offers excellent connectivity to all major social and commercial hubs of Kolkata city. Sustained recovery in the residential real estate market, buoyed demand for warehousing and data centres space has resulted in a rush among property developers to seek and conclude transactions for land parcels across the country.

The deals have gathered momentum again with many deals including outright acquisitions and joint ventures in key property markets of Mumbai, Bangalore, Delhi-NCR, Pune, Chennai, and Hyderabad either being closed or expected to be completed soon.

Realty developers have acquired around 2,181 acres of land valued at over Rs 26,000 crore in the last 17 months between January 2022 and May 2023 with an estimated development potential of around 209 million sq ft across 104 separate land deals, showed data.

Around 578 acres or 27% of the land, out of these 2,181 acres, was acquired in the first five months of 2023 alone. The data indicates that branded developers have successfully concluded many land transactions in top metros as well as tier 2 and 3 cities driven by the resilience shown by the real estate sector. Godrej Properties recorded bookings worth Rs 4,051 crore for the quarter ended March, taking its FY23 performance to Rs 12,232 crore, up 56% and more than fifth ahead of the annual guidance.

Sales volumes for the fourth quarter climbed 19% sequentially in area terms to 5.25 million sq ft from 4.42 million sq ft. During the year, sales volumes rose 40% to 15.21 million sq ft from 10.84 million sq ft. This was the company’s highest-ever quarterly and annual sales performance. In addition to sales, the company’s cash collections, and project deliveries also touched a new high.

The company recorded its best-ever year for business development too as it added 18 new projects during the period with a total estimated saleable area of nearly 29 million sq ft and total estimated booking value of Rs 32,000 crore.

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