We have a strong launch pipeline: Godrej Properties MD Mohit Malhotra

Mohit Malhotra, managing director of the company, tells Business Standard how the company is going ahead with its plans

Sitting on a cash of Rs 3,000 crore on its books, Godrej Properties is looking to buy land parcels in its key markets and launch projects. Mohit Malhotra, managing director of the company, tells Raghavendra Kamath how the company is going ahead with its plans. Edited excerpts:

What correction have you seen in land prices, compared to 2015?

In certain geographies under extreme distress, it has been strong. For example, in the National Capital Region, we have seen 40-50 per cent correction. In Mumbai, 10-20 per cent. It is very subjective in other markets —depends on the debt the land owner/JVP is under, market conditions and so on.

Your launch pipeline in 2020-21?

A very strong one. The aspiration is to show consistent growth over the coming launches. But, launches are governed by external circumstances (approvals, land clearances); hence, we cannot really comment on the exact details and timelines. We want to do more than we have done this (financial) year.

There were some reports that you are raising Rs 2,000 crore debt for land buys.

There is no plans to raise fresh debt in the near future. We have Rs 3,000 crore cash on the balance sheet.

Will your JV and outright buys ratio change in the near future? How much it is now?

Our focus continues to be on our profit share model (JV/JD). For very strategic assets, we will explore outright purchase of land.

Which cities are you looking to buy land parcels?

Our four focus geographies are the NCR, Bangalore, Pune and the Mumbai Metropolitan Region.

How is your new development management (DM) model doing? Are you looking for deals under the new DM where you invest in the land?

The new model you refer to is essentially an equity model. We take a joint ventire partner, taking 50 per cent equity stake in the project and investing towards the land, along with a 12 per cent DM charge on the project. We have a good pipeline of projects being evaluated under this model.

Your residential sales in the new financial year?

We expect to grow, given the market conditions, our strong brand and the consolidation happening in the market. We will need to keep the macro economy view in mind — there are always risks outside our sphere of influence. For example, the current virus outbreak which could impact business.