Mumbai: Real estate developer Godrej Properties Ltd (GPL) on Thursday said it has entered into a development management agreement with Manyata Developers Pvt. Ltd to develop a 4.7 million sq. ft housing project at Sarjapur in east Bengaluru.
The project would be spread over 53 acres and would be developed in phases, said Godrej Properties in a filing to the BSE. The first phase of over 16 acres will have 1.35 million sq. ft of saleable area.
Under the development management model, large realty firms typically step in as development managers for smaller developers and landowners, in return for a share of the revenue, share of profit or a management fee.
The Bengaluru project will be developed as modern residential development comprising apartments of various configurations, the company said. This would be GPL’s 14th project in Bengaluru.
“We are happy to add this new project in Bengaluru. Bengaluru is a key market for us and this project fits in our strategy of deepening our presence the country’s leading real estate markets," said Pirojsha Godrej, executive chairman, Godrej Properties in the filing.
Godrej Properties has been on an expansion spree for the last few months. The prolonged slowdown in the real estate sector has thrown up several distressed opportunities for established companies such as Godrej Properties.
On 14 September, it entered into a joint venture with Mumbai-based realty firm Nirmal Ventures to develop a 2.1 million sq. ft residential project on 14 acres in Thane near Mumbai.
Between April and July, Godrej Properties finalized land parcels—three in the National Capital Region (NCR) and one in Bengaluru. These were a mix of outright buys and joint development deals. Before the Nirmal deal, Godrej bought a 14.8-acre land on Dwarka Expressway from BPTP under the Godrej Residential Investment Program II (GRIP-II), a $275 million fund.
At 12.38pm, shares of GPL were trading up 2.07% at Rs607.20 on BSE, while Sensex was up at 31,211.92, up 0.17% from the previous close.