Godrej Properties to Invest more than $ 1 billion in Next Couple Of Years
Realty firm Godrej Properties Ltd (GPL) plans to invest more than USD 1 billion over the next couple of years to acquire and develop new projects as part of its target to achieve higher growth. "We sold 9,345 homes at an average of over 25 homes per day. Our QIP in March raised ?3,750 crore, and allowed your company to end the year with a net cash balance sheet," said Pirojsha Godrej, Executive Chairman of Godrej Properties Limited. Pirojsha pointed out that the business development in 2020-21 fiscal year was moderate, as the company adopted a wait-and-watch approach in the first half because of the pandemic. "The equity we have raised and the flexibility this provides our balance sheet will allow us to invest over one billion USD into new projects over the next couple of years," said Pirojsha. This will be substantially more than what the company has invested at any time in its past, he said, adding that the investment will allow the company to significantly accelerate its growth ambitions. "We expect to see this play a role both in ensuring we scale our revenues rapidly and also continue to improve the margin profile of our business by improving GPL’s economic interest in each project," Pirojsha said. To expand its business, GPL buys land outright from the market and also partners with land owners to add more projects to its portfolio for future development. Pirojsha said the company remains committed to two medium-term goals of consistently being among the leading developers by the value of housing sales in each of its focus markets and achieving a Return on Equity (RoE) in excess of 20 per cent. GPL focuses majorly on four markets-- Mumbai, Pune, Bengaluru and Delhi-NCR. It sold properties of more than ?1,300 crore in each of the four focus markets last fiscal. "The progress in market share gains has been encouraging, and combined with sustained momentum in new project additions, puts us on track for the first of our two medium-term goals," he said.
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