Godrej Properties hits record high after it buys land parcel in Bengaluru

The Mumbai-based real estate developer said it has bought 18-acre land parcel to develop a residential project in Whitefield, Bengaluru

Shares of Godrej Properties hit a fresh record high of Rs 1,256, up 4 per cent on the BSE, in the intra-day trade on Tuesday after the Mumbai-based real estate developer said it will develop a residential project in Whitefield, Bengaluru. The stock surpassed its previous high of Rs 1,231, touched on December 2, 2020.

"The company has entered into an outright transaction to purchase a well located land parcel in Whitefield, Bengaluru. Spread across approximately 18 acres, this project will offer 0.22 million square meters (2.4 million square feet) of saleable area comprising primarily of residential apartments of various configurations," Godrej Properties said in a press release. READ HERE

Whitefield is the largest commercial and residential real estate market in Bengaluru and this land parcel is situated near the proposed metro line connecting Whitefield to Hopefarm Junction, it said.

In the past one month, the stock of Godrej Properties has outperformed the market by surging 33 per cent as compared to a 9-per cent rise in the S&P BSE Sensex.

While announcing September quarter results on November 3, the management said the real estate sector continues to be impacted by the pandemic but they believe this provides Godrej Properties with a tremendous opportunity to drive market share growth in residential real estate.

While the company's planned launches in the second quarter were postponed due to regulatory approval delays, it saw one of the strongest-ever quarters for sales from existing projects. With a robust launch pipeline in the second half of the financial year, the management expects strong sales momentum during this period.

At 02:53 pm, the stock was trading 3 per cent higher at Rs 1,247 on the BSE, as compared to a 0.50-per cent gain in the S&P BSE Sensex. Trading volumes on the counter nearly tripled with a combined 1.9 million equity shares having changed hands on the NSE and BSE till the time of writing of this report.