Godrej Properties NSE -2.90 % has entered into a joint venture with realty developer TDI Group to develop an ultra-luxury residential project in Connaught Place, one of the prime locations within the Central Business District of New Delhi.
The project is estimated to have a developable potential of around 1.25 lakh sq ft saleable area comprising primarily residential apartments of various configurations.
“As we continue to strengthen our presence in Delhi, we are happy to add this project in one of downtown Delhi’s most desirable locations. This will be our third project in Delhi and further expands our presence across India’s leading cities,” said Mohit Malhotra, MD & CEO, Godrej Properties.
The site of the proposed project is centrally located and offers good connectivity, well developed social and civic infrastructure with Delhi’s best schools, hospitals, retail and commercial spaces in close proximity.
“We are proud to be associated with Godrej Properties to deliver this uber-luxury project and we look forward to this association,” said Kamal Taneja, Managing Director, TDI InfraCorp.
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.
In November, the company acquired a 16-acre prime land parcel in Bangalore’s fastest developing micro-market of Sarjapur to develop a mid-income housing project.
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 been raising funds to drive consolidation with the use of additional capital and to significantly strengthen its development portfolio.
Last year, Godrej Properties had raised Rs 1,000 crore through non-convertible debentures on a private placement basis for a term of three years at 7.5%. Prior to that, it had raised Rs 2,100 crore last year through a qualified institutional placement (QIP).
In March this year, the developer raised Rs 3,750 crore through another QIP of 25.9 million equity shares to global investors including Goldman Sachs Funds, government of Singapore and Invesco Oppenheimer Developing Markets Fund.