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| Edited By: Pooja Sarkar |Source: DNA |Updated: Mar 17, 2018, 04:43 AM IST
Godrej Properties, the Adi Godrej-promoted realty venture, is all set to close a redevelopment deal in the island city this quarter, sources in the know said.
Also, its land deal with Jet Airways at Bandra Kurla Complex, which was slated to close on July 15, has now been extended till the end of the month, sources said.
A source privy to the deal said, “Jet has to get an additional floor space index of 9.5 then only would Godrej go ahead with the deal. The deal is quite complexly structured. The global FSI available at BKC is lower, but if the project has to be viable they need more FSI as the land is quite expensive.”
Godrej Properties plans to start construction at its Vikhroli land parcel of 35 acre or 2.9 million square feet (msf) in the last quarter of this fiscal, said Milind Korde, managing director.
For the Vikhroli land, Godrej & Boyce, a group company, will first receive the annual lease and then the profits would be shared by Godrej Properties and Godrej Industries in 60% and 40% ratio, respectively.
Korde denied comment on the Jet deal.
Godrej Properties’ Ahmedabad project is slated to launch its third phase in next 2 months and the company will start booking profits from the first and second phases of the project by the third quarter of the current fiscal.
It is also looking at developing hotels at its Vikhroli and Ahmedabad properties.
Adi Godrej, chairman, Godrej group, said, “We will launch 2 other projects worth 1 msf in Gurgaon close to Manesar. We will also launch projects in the affordable segment that is below Rs 25 lakh in Kolkata, Ahmedabad, Kalyan and Thane.”
Godrej said, “We are in discussion with people to develop redevelopment projects in the island city and old houses in the suburbs.”
Last year the company developed 3.9 msf. Its present debt to equity ratio is 0.5:1 with an average interest cost of 9.75%.
On real estate prices heading northwards, Godrej said, “There is supply crunch and government should give better FSI as India is one of the most densely populated countries.” The company will also launch projects in Chennai, Kochi, Hyderabad and Pune for which it has sanctioned an outgo of Rs 108 crore.
