Macrotech to develop its first housing project in Bengaluru
Realty major, Macrotech Developers Ltd on Thursday told the media that its entry into the Bengaluru market, and has formed a joint venture (JV) to develop its first housing project with an estimated sales bookings value of Rs 1,200 crore.
In a regulatory filing, Macrotech Developers said it would obtain 100% equity of G Corp Homes to make entry into the Bengaluru market.
Macrotech Developers, which sells its properties under the Lodha brand, has a powerful presence in Mumbai Metropolitan Region (MMR) and Pune.
Macrotech said the firm's first project in Bengaluru has been inked through the joint development agreement (JDA) route by acquiring 100% equity shares of a firm namely G Corp Homes Pvt Ltd.
G Corp Homes has been acquired for a value of Rs 21 crore, and property consultant Anarock facilitated the contract. The project is located in neighbouring Manyata Tech Park.
The project has a gross development value (GDV) potential of about Rs 1,200 crore and a saleable area of about 1.3 million sq ft. The project launch is likely in the next 6-12 months.
Macrotech said Bengaluru would be the third housing market where the firm's residential developments will be open for the clients, thereby covering almost two-thirds of the housing market of the top seven Indian cities.
This follows the firm's successful expansion in Pune, where it now has two functioning projects and several more to be established in FY23.
On the back of strong underlying housing demand and consolidation in the industry, the firm hopes to grow its pre-sales by over 20% compound annual growth rate (CAGR) in the medium term, Macrotech said.
The foray into the Bengaluru market will be one of the drivers of sustainable, and low-risk growth.
The firm has recruited Rajendra Joshi as CEO for the Bengaluru market, Macrotech said.
During the current fiscal year, Macrotech Developers is targeting a 27% increase in its sales bookings at Rs 11,500 crore on better demand prospects and a robust pipeline of new launches. Its sales bookings stood at Rs 9,000 crore in the previous financial year (FY).
Also read: Macrotech Developers redeems offshore bonds worth $170 mn