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Godrej Properties in advanced talks to sell 14-acre Gurugram Land

2023-10-10

Godrej Properties is currently in advanced negotiations with Hero Realty to sell a 14-acre land parcel in Gurugram valued at approximately Rs 7.3 billion. The Mumbai-based real estate company had acquired this land in Sector 89 just two years ago from a local land-aggregating company.

The surprising aspect of this deal lies in its timing, considering the recent acquisition by Godrej Properties. However, sources familiar with the matter confirm that the transaction is at an advanced stage, and both parties have reached a mutual agreement.

According to insiders, the asking price for the Floor Space Index (FSI) stands at Rs 3360 for 2.1 million sq ft, with a Floor Area Ratio (FAR) of 3.5 on the land.

Godrej Properties, a prominent player in Gurugram's real estate market, had plans to develop one of its largest residential projects in the city, which would have significantly bolstered its presence there. The company had obtained a license agreement from the Haryana government's town and country planning department in July 2023 to create a mixed-use development in Sector-89 Gurugram Manesar urban complex, including a 5% commercial component.

Despite repeated attempts to seek clarification, both Godrej Properties and Hero Realty have refrained from commenting on this unexpected development. This sale contrasts sharply with Godrej Properties' recent trend of actively acquiring land in key residential areas to meet the surging demand for housing. Notably, they had acquired a 15-acre plot in Sector 103 of Gurugram from Microtek Infratech for Rs 4.03 billion and made significant land acquisitions in Noida and Mumbai.

In the previous fiscal year, Godrej Properties aggressively procured 18 new land parcels with a sales potential of Rs 320 billion post-development. This included the outright purchase of nine acres of land in Gurugram for a high-end residential project, as well as an 18-acre land parcel in Kandivali, Mumbai, for Rs 7.5 billion to develop a luxury housing project.

Despite these unexpected turns, Godrej Properties has shown remarkable growth, achieving a 56% increase in sale bookings in the last fiscal year, reaching an all-time high of Rs 122.32 billion. The company has set an ambitious bookings target of Rs 140 billion in the fiscal year 2024.