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Godrej Properties' Chennai Land Deal: Revenue of ₹500 Crore, Cost Unknown
Godrej Properties acquired 47 acres in South Chennai for plotted residential development. The land cost is undisclosed, leaving margin analysis speculative for investors.
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Godrej Properties bought a 47-acre land parcel in South Chennai for a plotted residential development. The company expects ₹500 crore in revenue from the project, it said in a regulatory filing Tuesday. The deal is an outright purchase. The land cost was not disclosed.
The proposed development covers roughly 1.2 million square feet. That works out to an average realization of about ₹416 per square foot. Earlier this month, Godrej Properties won a 23.2-acre site in Greater Noida through auction for over ₹500 crore, targeting ₹7,000 crore in revenue – a 14-to-1 revenue multiple on land cost. Without the Chennai land cost, a direct margin comparison is not possible.
Gaurav Pandey, MD and CEO, said South Chennai is seeing a shift in residential demand. “This belt has emerged as one of the most promising residential micro markets in the region,” he said. The acquisition bolsters the company’s presence in the Chennai market.