Godrej Properties, realty arm of the USD 1.3 billion Godrej Group, has completed the acquisition of Kolkata-based Happy Highrises for around Rs 100 cr.
MUMBAI: Godrej Properties, realty arm of the USD 1.3 billion Godrej Group, has completed the acquisition of Kolkata-based Happy Highrises for around Rs 100 crore, a top company official said here on Monday.
"We have acquired Happy Highrises, a Kolkata company.... we intend to set up a middle-income group residential complex there," Godrej Properties' Managing Director Milind Korde said.
The company has secured around 3.5 million sq ft of developable land through this acquisition and will use a major portion to set up residential properties, with a small part reserved for retail play.
"This will be our first residential project in Kolkata ....we will develop the property on our own," Korde said, adding, "this acquisition gives us a strong foothold in the residential segment in the city."
The acquisition was funded through internal accruals and the total investment in the proposed project is pegged at around Rs 500 crore. Construction work on the residential project is expected to commence in early-2008, he said.
The company already has a presence in the eastern metropolis through two under-construction IT parks.
The first, Godrej Waterside, should be ready by 2008-end while the other, Godrej Genesis, by early-2010, Korde said.
Godrej Properties is betting big on Kolkata since it scents immense potential there.
"The government policies are progressive and we feel it makes sound business sense to have a presence in Kolkata," Korde said.
Going forward, consolidation of business operations in Mumbai and its environs, Bangalore, Hyderabad and Pune, will comprise the cornerstone of the company's future growth strategy.
"We are also looking at new markets such as Chennai, Goa, Kochi and Tier II cities like Nagpur and Nashik," Korde said.
On Godrej Properties' proposed IPO, which is likely to hit capital market in the latter half of this fiscal, Korde said: "details are still being fine-tuned."
Adi Godrej, the group's Chairman, had earlier indicated that the IPO could be in the range of Rs 800-1,000-crore.
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