Godrej Properties set to scale up developments

Godrej Properties Ltd plans to step its real estate development business in the coming year, with nine new projects across major cities, and consolidate its presence in these markets, according to Pirojsha Godrej, executive director. Addressing media persons during the launch of Godrej Palm Grove, a 1,556-apartment project in Chennai jointly with Addison & Co of the Amalgamations Group, he said the company has firmed up plans to raise over Rs 500-600 crore through an institutional placement programme. In Chennai this will be its first project with more planned in Mumbai, Delhi, and Bangalore, which along with Chennai, will be its focus areas. It will also look at smaller cities. Ahmedabad is the location of its largest project involving a development of over 24 million square feet over a 10-year period. It has announced projects in 12 cities. Godrej said the company is keen on consolidating its presence in the markets where it has gained a foothold by offering significant volumes. It has planned several projects in Mumbai, where re-development will contribute to a significant share of development. Some of these re-development projects are in the pipeline and will be announced over the next one year, he said. The company follows the joint venture model of development and has entered into a 70-30 revenue sharing agreement with Addison, the land owner getting the 30 per cent. Apartments in the project located near Chembarambakkam on the Chennai-Bangalore highway, about 6 km from Poonamallee, will range around Rs 50-60 lakh. source: http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=18719&cat_id=1