Lodha Group inks joint development pact for 1.5-million-sq-ft residential project in Pune
March 09, 2022 | By Economic Times
Real estate developer Lodha Group has entered into an agreement with Pune-based developer Goel Ganga Developments to jointly develop a 1.5 million sq ft residential project on a 12-acre land parcel on NIBM Road in southern Pune.
Lodha Group, listed on stock exchanges as Macrotech Developers, is planning to invest about Rs 700 crore to develop this project adjacent to Pune’s cantonment area.
The premium residential project, with some elements of retail and work near home offices, is estimated to generate revenue of Rs 1,100 crore.
With this project, Lodha Group is expanding its presence in Pune, where it is evaluating more opportunities for development and is keen to be present in multiple locations within the next six months.
“We believe that Pune’s strong manufacturing and information technology industries, combined with its educational fabric, will make Pune amongst India’s top five cities in this decade. With Pune moving into the league of the top cities in India… we intend to create the same standard of living in Pune that we have delivered in London and Mumbai,” said Abhishek Lodha, managing director, Lodha Group. “We look forward to bringing our global expertise to cater to the needs of homebuyers in the Pune market who look for premium homes that are spacious, amidst greenery, world-class amenities and properties that provide integrated living.”
This is Lodha Group’s second project in Pune and marks its return to this property market nearly a decade after its luxury development Lodha Belmondo in Gahunje locality.
The new project will be one of the tallest buildings in the NIBM area with unobstructed views of the city. The premium residential project will offer configurations of two, three bedrooms, three bedrooms with study and four-bedroom penthouses across the 25-storey tower.
The project will be developed in two phases, with the first phase of about 400 residential apartments, and will be completed in nearly three years. Construction is expected to start in the next six weeks.
The ongoing consolidation in the real estate sector has accelerated due to the Covid-19 pandemic. Large established and listed real estate developers have gained more market share in terms of sales and liquidity as homebuyers are relying more on developers’ execution track record and sound financial position to take the project to conclusion.
According to industry experts, better demand prospects, strong balance sheets and adequate liquidity are likely to enable larger developers to weather the storm better than smaller players, who have been finding it difficult to cope with the prevailing market conditions.
Improved sales velocity and increased market share are proving to be advantageous to big developers to tap more inorganic growth opportunities too.
Published in Economic Times