Bullish on the realty sector, Godrej Properties is looking at entering the hospitality and education sectors, the company chairman said here today.
"We expect a very rapid growth. We are already present in 11 cities now (including in NCR), with multiple projects. We are open to all sorts of projects such as hotels and educational institutions," Godrej Group Chairman Adi Godrej told PTI here today.
Godrej, however, did not divulge further details except saying that the company will only develop hotel properties and not manage them. The same will be the case with educational institutions, he added.
Godrej Properties is the realty arm of the Godrej Group and is currently developing about 90-million sq ft of commercial and residential areas.
Going forward, it plans to focus on affordable and mid-market residential projects, he said, adding, "the company sees huge demand for affordable housing in smaller cities."
"Most of the future development will be in the affordable and mid-market segments. We see a great opportunity in the sector by leveraging our brand strongly. We recently entered the NCR region where we are developing over a million-sq ft. This is a mid-market property and will be launched in next the six months," Godrej said.
The Rs 243-crore Godrje Properties will be launching a few more affordable residential projects in Mangalore, Bangalore, Kochi and Hyderabad. It has already completed eight projects, most of which are in Mumbai, Pune and Kolkata.
On fund-raising, Godrej said the current debt-equity ratio is quite comfortable at a little less than 1:1. "We will raise funds as and when required," he said. Last December, the company had raised Rs 468.85 crore through an IPO.
Asked about the company's plan to redevelop about 35 acre land at Vikhroli in Mumbai, Godrej said the land will be developed under a tripartite agreement between Godrej Boyce, Godrej Industries and Godrej Properties. The company is waiting for regulatory approvals, he added.
"Vikhroli which houses all the major offices of Godrej Group, will be developed as an iconic green industrial, commercial and residential township. It is an ongoing process and will take a few years to develop," Godrej said, adding the first phase will be launched early next year.
When asked about the prevailing residential prices, Godrej said demand is huge but supply is less, resulting in sharp price rise. "The government should bring in some reforms in the realty sector and allow higher floor space index. This may not bring prices down but will definitely not allow prices to rise any further," he said.
