Godrej Properties, the real estate development arm of the Godrej Group,is likely to add at least 10 new residential projects across the country to its existing development portfolio in the current financial year until March end, a top company official said.

These new additions will be made through its existing model of forming alliances and even direct land acquisitions supported by its robust balance sheet.

“Average size of the project to be added to the portfolio will probably be 1.5 to 2 million sq ft. But it can vary depending on location and the opportunity.A lot of our new projects are such where our economic interest is higher,"Pirojsha Godrej, executive chairman, Godrej Properties, told ET.

The Godrej Group company is looking to leverage its brand and financial position to tap consolidation opportunities through distress situations arising in the real estate sector.

Industry experts believe the ongoing market consolidation in favour of large and established developers will gain momentum owing to their better execution ability and access to liquidity in the current market environment than that for smaller developers.

The company has also been raising funds to drive consolidation with the use of additional capital and to significantly strengthen its development portfolio. Currently, it has a war chest of $1 billion to support its growth plans.

Godrej Properties has added 3 new projects with saleable area of around 6.1 million sq ft in its development portfolio in the quarter ended March. This includes a 50-acre project in Sonipat of the National Capital Region (NCR), 33-acre project in Bangalore’s Bannerghatta Road and a project spread over 9 acres in Pimpri Chinchwad.

Of these newly added projects, Bangalore and Pimpri Chinchwad are 100% owned projects. It has added a few more residential projects in the last one month too.

“The real estate sector has strengthened during FY22 and we expect strong growth for the sector over the next few years. We are pleased to close the financial year with our best ever annual sales, cash collections, and earnings.With a robust launch pipeline, strong balance sheet and sectoral tailwinds, we look forward to building on this momentum in FY23,” Godrej said.

The company has reported its best ever quarterly sales with 23% on-year and 111% sequential rise in booking value Rs 3,248 crore in the fourth quarter. It has recorded the highest-ever quarterly and annual residential collections with Rs 2,678 crore residential collections in the March quarter and Rs 6,907 crore in the financial year 2021-22.

The developer has reported net profit of Rs 260 crore for the quarter ended March as against net loss of Rs 192 crore a year ago. Total income rose 191% to Rs 1,476 crores.

While the cost of construction raw materials has been spiralling upwards, the company has already hiked prices across its projects by 7-10% over the last few quarters. Godrej expects its operating margins to improve hereon as the price hikes have already been well received by the market in the backdrop of robust demand.

Source: Economic Times