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Real estate development projects to get funding of Rs. 7,500 cr from Godrej

BNE ADMIN


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New Delhi: Godrej Properties plans to invest around Rs 7,500 crore over the next 12-18 months on the acquisition and development of new real estate projects.

In an interview with PTI, Godrej Executive Chairman Pirojsha Godrej sounded upbeat about the growth potential in the housing and commercial real estate segments especially in four major markets.

Mumbai Metropolitan Region (MMR), Delhi-NCR, Bengaluru, and Pune-where the company has a huge presence.

"We will invest USD 1 billion (around Rs 7,500 crore) over the next 12-18 months on the development of new projects, Pirojsha said, adding that the planned investments would be in the mix of equity and debt.

Godrej Properties, the largest listed realty firm in the Last fiscal in terms of sales bookings, acquires new projects through outright purchase of land parcels and also forming joint ventures with landowners.

Pirojsha said the company acquired three projects in the third quarter of this fiscal and the pipeline is strong.

"Q4 should be good for us in both sales bookings and new project acquisitions. We are likely to close many deals this quarter," he hoped.

In March last year, Godrej 6,725 crore. Properties had raised Rs 3,750 crore through the Qualified Institutional Placement (QIP) process as part of its objective to strengthen the company's balance sheet and future business growth. Its net debt is mere Rs 313 crore as of December 31, 2021, The debt-equity ratio is also only 0.04.

When asked about entering into new cities, Pirojsha said: "We are interested in Hyderabad. But it is not our top priority.. There are huge opportunities in the top four key markets where we have a major presence.

The company intends to enter Hyderabad in a big way and not just for the development of one or two projects, he said.

On operational performance, Pirojsha said the company is likely to achieve all-time high sale bookings in the 2021-22 financial year, beating the last year's record of Rs. 6,725 crore.

"We will have decent growth in sales bookings this fiscal," he said.

During the first nine months of the current 2021-22 fiscal year, the company has clocked sales bookings of Rs 4,613 crore-up 13 percent from the year-ago period.

Out of the total sales bookings, residential properties contributed Rs 45 crore and commercial Rs 54 crore-PTI

BNE ADMIN