"Mumbai requires a large number of redevelopment projects especially for increasing the availability of housing in the city. Recently, we signed a few deals for redevelopment projects. We will continue to look to extend the redevelopment model in our project portfolio," GPL Managing Director and CEO Pirojsha Godrej said.
The city-based firm's subsidiary Godrej Projects Development (GPDPL) recently entered into an agreement with Kamla Landmarc Property Leasing and Finance to redevelop 18 residential buildings in Chembur, Mumbai.
GPL also sold 49% stake in the project to ASK Property Investment Advisors. GPDPL also entered into a development management agreement (DMA) with RR Builders to redevelop a MHADA property in Byculla, under which, the former will be responsible for conceptualisation, design, sales, and marketing of the project, while the latter will bear entire costs for construction and development. Besides, the company has also entered into an agreement with Godrej & Boyce (G&B), where GPL will act as development manager and will be responsible for the conceptualisation, design, sales, and marketing of all future development on the G&B-owned Vikhroli land. "Redevelopment and development management models allow us to do a lot of development without needing to buy the land. They also both leverage to a great extent the strength of Godrej brand in attracting partners to work with us even without deploying capital. "I think they make a lot of strategic and financial sense to the company and these are models we will continue to look to extend this year," he said. Godrej further said these two business models will give the company an opportunity to grow its business in the period of weakness in the market. "This period of weakness is the time of opportunity for the company to get new projects into our portfolio at attractive valuation. With these two models, we will be able to enhance our operational performance further," he said. GPL plans to launch 15 projects in the fiscal, he said, adding, "it will include phases of existing projects, new projects, which may include redevelopment projects as well. The new projects will be launched in cities where we already have presence." The company has a presence in 12 cities, including Chandigarh, Gurgaon, Ahmedabad, Nagpur, Mumbai, Hyderabad, Pune, Mangalore, Bengaluru, Chennai, Kochi and Kolkata.